We refer to the newspaper article published in The Malay Mail dated 15 September 2020 titled “Perak Corp Bhd going bankrupt, Putra veep says” (“Article”) appearing in the following link:

https://www.malaymail.com/amp/news/malaysia/2020/09/15/perak-corp-bhd-going-bankrupt-putra-veep-says/1903404

The Company wishes to clarify the following statements made in the said Article:

“Parti Bumiputera Perkasa Malaysia (Putra) vice-president Datuk Hamidah Osman today revealed that the Perak Corporation Berhad (PCB), which holds about 60 per cent of Perak State Development Corporation’s (PKNP) assets, is in the midst of winding up its operations"

The Company wishes to clarify that save for Animation Theme Park Sdn Bhd which has been placed under receivership on 4th December 2019 and had ceased operations on 28 January 2020, none of the subsidiaries, associate companies as well as PCB has been placed under liquidation, winding-up or judicial management.

“PCB borrowed a total of RM520 million from banks to invest in Movie Animation Park Studios (MAPS) and an additional RM200 million were also borrowed to pay contractors."

The Company wishes to clarify that investment in share capital in MAPS by PCB Development Sdn. Bhd. (PCBD) of a total amount of RM58.35 million. Total shareholders advance from PCB Group is RM275.2 million funded via internally generated funds and bank borrowings.

“Hamidah said PCB only has until October 23 to settle its debt or risk going into receivership, with the High Court here granting 90 days from July 23 to arrange a comprise scheme with the creditors, which she claimed is impossible."

The Company wishes to clarify that it had on 23 July 2020 obtained a High Court Order for the Court Convened Creditors’ Meeting to be held pursuant to Section 366 of the Companies Act 2016 and a Restraining Order to be granted for ninety (90) days of which will expire on 20 October 2020. An extension of the restraining order is allowed by the High Court provided that all the relevant conditions set out in Section 368 of the Companies Act 2016 can be fulfilled.

The Company has on 3rd July 2020 appointed M&A Securities Sdn Bhd as its Adviser to conceptualise the proposed restructuring scheme. The Company will make further announcements to Bursa Securities as and when there are material developments in relation to its regularisation plan to uplift itself from its PN17 status.

“We have also heard that there are already some discussions between state government and foreign investors on selling the Lumut Port."

The Company wishes to clarify that there have been no discussion commenced between the State Government of Perak with any parties for the sale of the Lumut Port.

This announcement is dated 18 September 2020.