KUALA LUMPUR (Jan 4): Ageson Bhd, which was sued by RHB Bank Bhd last year over a loan default, today paid part of the outstanding sum owed to the bank.

“The board of directors of Ageson wishes to inform that the company and RHB had reached a consensus in principle on the loan settlement proposal,” the group said in a filing today.

Ageson did not disclose the sum paid to RHB under the first payment.

Ageson also updated that the company and RHB have agreed for the litigation process that was started last year to be held in “abeyance”, or temporarily put on hold.

In September last year, the construction group said RHB had filed a suit against it and its wholly-owned subsidiary Ageson Development Sdn Bhd over the RM33 million term loan obtained by the subsidiary and guaranteed by the group.

It said RHB was seeking RM20.8 million as at July 31, 2020 with a 3.5% interest per annum above the bank's base lending rate from Aug 1 until the date of full settlement.

Explaining the loan default, Ageson said back in September, it was of the view that it was entitled to a moratorium on the repayments of the loan during the Movement Control Order period.

It also reaffirmed that it has sufficient working capital cash flow to manage its current operations, as well as payment obligations to its creditors.

Shares of Ageson closed unchanged at 13 sen today, for a market capitalisation of RM135.37 million.