The Company wishes to announce that the EKA Noodles Berhad and Kilang Bihun Bersatu Sdn Bhd (“KBBSB”), a wholly-owned subsidiary of the Company had, on 27 October 2017 been served with the Writ of Summon dated 12 October 2017 and Statement of Claims dated 12 October 2017 issued by the Penang High Court in relation to the claims filed by the Plaintiff.

The case management had been fixed on 10 November 2017.

Particulars of claim and circumstances leading to filing of the Writ of Summons dated 12 October 2017

The Plaintiff had granted the BBA facilities under the Islamic Banking Scheme to KBBSB and the Company is the corporate guarantor for the said facilities. KBBSB had defaulted in payments and the said facilities were called back by the Plaintiff.

The Plaintiff seeks against Defendants for the following:

1. the sum of RM3,183,860.21 and RM1,336,666.01;
2. ta’widh upon the sum RM2,098,510.14 and RM1,006,269.85 based on the rate of 1% per annum calculated from 09 January 2017 up to the date of full settlement and/or judgement and/or date of maturity of the BBA facilities (whichever is earlier);
3. ta’widh upon the sum RM3,183,860.21 and RM1,336,505.56 based on the “Interbank Islamic Money Market” rate per annum on the relevant point in time calculated from the date of judgement and/or date of maturity of the BBA facilities (whichever is earlier) up to the date of full settlement;
4. the sum of RM2,539,949.41;
5. ta’widh upon the sum RM2,517,608.68 based on the “Interbank Islamic Money Market” rate per annum on the relevant point in time from 09 January 2017 up to date of full settlement;
6. costs of this action; and
7. other relief or orders as the Court deems fit and proper to grant.

Financial and Operational Impact

The above will not have any financial or operational impact on Group.

Expected losses to the Group, if any

KBBSB is exposed to the claims, interests and legal expenses as stated above.

Steps taken by the Company

KBBSB had appointed a firm of lawyers to act on its behalf for the case management fixed on 10 November 2017.

This announcement is dated 30 October 2017.