The Company wishes to announce that Dato’ Adam Primus Varghese bin Abdullah of Messrs Adamprimus has been appointed as receiver and manager (“Appointment”) over the property of Scomi Rail Bhd (“SRB”), an indirect wholly-owned subsidiary of the Company, by Malayan Banking Berhad (“MBB”) pursuant to the powers contained in a debenture dated 30 September 2016 issued by SRB in favour of MBB.

Details of the Appointment are as follows:

(a) The Appointment is dated 9 May 2019.

(b) SRB is a wholly-owned subsidiary of Scomi Engineering Bhd (“SEB”), which in turn is a wholly-owned subsidiary of the Company. SRB is involved in the design, manufacture and supply of monorail trains and the provision of related engineering support services and engineering works.

(c) SRB is not a major subsidiary of the Company.

(d) The net book value of the property of SRB as at 31 March 2018, including all current and non-current assets is RM506,980,525.00.

(e) SRB had on 8 February 2019 received a notice of demand dated 25 January 2019 from MBB for a sum of RM 201,906,795.15 arising from the failure by SRB to pay the amount due to MBB under bank facilities granted by MBB to SRB. 

(f) The Appointment will not have any significant financial and/or operational impact on the Company for the financial year ending 30 June 2019.

(g) No material loss is expected to arise from the Appointment based on present assessment.

This announcement is dated 9 May 2019.