AUTOV

2.050

(%)

DEFAULT IN PAYMENTS

AUTOINDUSTRIES VENTURES BERHAD

TypeAnnouncement
SubjectDEFAULT IN PAYMENTS

Contents :

Further to the first announcement made on 14 December 2001, and subsequently on every month, the financial position of the Company in respect of its default in payments in the month of August, 2002 is as follows:-


Name of Creditor
Principal
(RM)
Interest
(RM)
Total
(RM)
i) Pacven Walden Ventures III L.P.
2,730,955.03
1,387,105.22
4,118,060.25
ii) BI Walden Ventures Keempat Sdn Bhd
1,069,577.00
543,256.74
1,612,833.74
iii) Financial Institutions
15,833,067.54
283,009.02
16,116,076.56
TOTAL
19,633,599.57
2,213,370.98
21,846,970.55

a) The reason for the default in payments and the measures to be taken by the Company are as announced to the Kuala Lumpur Stock Exchange ("KLSE") on 14 December 2001.
      As announced to the KLSE on 14 December 2001, one of the measures taken by the Company to address the default in payments is to carry out a Proposed Restricted Issue of up to 13,000,000 new ordinary shares of RM1.00 each at a proposed issue price of RM1.00 each for cash and issue 2,000,000 new ordinary shares of RM1.00 each to BI Walden Ventures Keempat Sdn Bhd ("BIWV4") and Pacven Walden Ventures III L.P. ("Pacven Walden") at a proposed issue price of RM1.00 each as part settlement of the amount due ("Proposed exercise").
      The Company has received all the necessary approvals on the proposed restricted issue of shares which was announced by Commerce International Merchant Bankers Berhad on 1 July 2002 and is now pending the approvals from the following:-
      i) the KLSE for the listing of and quotation for the new AIV shares to be issued pursuant to the Proposals on the Second Board of the KLSE; and
      ii) the Shareholders of the Company at an Extraordinary General Meeting to be convened.


b) There should not be financial and legal implications in respect of the default in payments including the extent of the Company's liability in respect of the obligations incurred under the agreements for the indebtedness as the Management is currently negotiating with the lenders on the rescheduling of payment terms through the proposed exercise.

c) The Management is of the opinion that the default in payments should not constitute any event of default under a different agreement for indebtedness (cross default) due to the management's initiative as indicated in Paragraph (b) above.

Announcement Info

Company NameAUTOINDUSTRIES VENTURES BERHAD  
Stock Name AUTOVEN    
Date Announced14 Aug 2002  
CategoryGeneral Announcement
Reference NoCU-020814-42281

View original announcement