EKA

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OTHERS APPLICATION FOR JUDICIAL MANAGEMENT ORDER FOR TWO (2) SUBSIDIARIES OF EKA NOODLES BERHAD ("EKA" OR "THE COMPANY")

EKA NOODLES BERHAD

Type Announcement
Subject OTHERS
Description
APPLICATION FOR JUDICIAL MANAGEMENT ORDER FOR TWO (2) SUBSIDIARIES OF EKA NOODLES BERHAD ("EKA" OR "THE COMPANY")

The Board of Directors of EKA wishes to announce that its wholly-owned subsidiaries namely Kilang Bihun Bersatu Sdn Bhd (“KBBSB”) and Kilang Bihun Bersatu (East Malaysia) Sdn Bhd (“KBBEM”), (collectively, the “Affected Subsidiaries”) had on 28 February 2021 applied for Judicial Management Order (“JM Order”) pursuant to Sections 404, 405, 406, 407, 408, 410 and 411 of the Companies Act, 2016 with the High Court of Malaya at Alor Setar, Kedah.

 

The application for the JM Order immediately puts into effect a moratorium (“Moratorium”) for the period commencing with the application of the JM Order and ending with the grant or dismissal of the application, during which no resolution shall be passed or order shall be made for the winding-up of the Affected Companies. In addition, during this Moratorium, the leave of the High Court will be required:-

  1. To enforce any charge on or security over the properties of the Affected Companies; and
  2. To commence or continue any legal proceedings against the Affected Subsidiaries or their respective properties.

The rationale of the application is as follows:

  1. To get the involvement of an independent professional to manage the ongoing operations of the Affected Subsidiaries with the assistance of the existing management subject to the approval of the High Court;
  2. To rehabilitate and maximize the return to secured creditors of the Affected Subsidiaries; and
  3. To give the Affected Subsidiaries a chance to rehabilitate and be restored to profitability.

The Moratorium is not envisaged to have any material financial and operational impact to EKA and its subsidiaries (“the Group”).

 

The Board of Directors of the Company is of the view that the application for JM Order for the Affected Subsidiaries is in the best interest of the Group.

 

Further development on the above matter will be announced to Bursa Malaysia Securities Berhad in due course.

 

This announcement is dated 01 March 2021.






Announcement Info

Company Name EKA NOODLES BERHAD
Stock Name EKA
Date Announced 01 Mar 2021
Category General Announcement for PLC
Reference Number GA1-25022021-00093