We refer to the announcement made by Parkson Holdings Berhad ("PHB" or the "Company") on 2 February 2021 in relation to the announcement made to the Singapore Exchange Securities Trading Limited ("SGX-ST") by Parkson Retail Asia Limited ("PRA"), a 67.96% owned subsidiary of the Company listed on the SGX-ST, in respect of the legal proceedings involving PT Tozy Sentosa ("PT Tozy") ("Announcement").
Unless otherwise stated, the terms used throughout this announcement shall have the same meaning as defined in the Announcement.
On 26 March 2021, PRA had announced that it was informed by PT Tozy that 5 out of the 28 Claimants ("PKPU Applicants") had on 3 March 2021, filed a "Suspension of Debt Payment Obligation" ("PKPU") application against PT Tozy ("PKPU Application") with the Commercial Court at Central Jakarta District Court, Jakarta, Indonesia ("Commercial Court") ("PRA Announcement"). A copy of the PRA Announcement is attached herewith.
The total amount claimed by the PKPU Applicants is approximately IDR4,882.9 million (approximately S$0.46 million or RM1.41 million). While negotiations with the Claimants have not progressed successfully and no settlement or instalment repayment arrangement has been agreed to, PT Tozy has not received any court application or further legal notices in respect of the remaining 23 Claimants, and remains prepared to continue its engagement with all parties for amicable resolution.
PT Tozy has engaged the Indonesian legal counsel to advise on the PKPU Application. The details of the initial legal advice received from the Indonesian legal counsel are set out in the PRA Announcement which included, the PKPU Application being fixed for judgement hearing at the Commercial Court on or around 31 March 2021.
As highlighted in the Announcement, most of the Claim Amount had been recognised in the financial statements of PT Tozy. At this juncture, PRA is unable to ascertain if there could be any additional financial impact of the PKPU Application as it will depend on the decision of the Commercial Court as well as the outcome of the creditors’ vote on a composition plan which will need to be proposed by PT Tozy (collectively, the "Outcome"). The PRA Group will provide an update when it is in a better position to determine the expected financial impact, after further consultation with the Indonesian legal counsel and PRA’s external auditor.
PRA will make further announcements as and when there are any material developments.
In the event the Outcome is not in favour of PT Tozy and PT Tozy is required to settle the outstanding debts owed to all of its creditors, it would not have a material impact on the earnings of the PHB Group for the financial year ending 30 June 2021 and the net assets of the PHB Group based on the audited consolidated statement of financial position of the Company as at 30 June 2020.