KUALA LUMPUR (June 14): Public Bank Bhd is suing Impiana Hotels Bhd's unit to claim RM44.36 million over alleged failure to settle the outstanding sums due under four term loan facilities and an overdraft facility.

Impiana said the lawsuit against its wholly-owned subsidiary Astaka Mekar Sdn Bhd is fixed for case management on June 22.

Also named as defendants in the suit are Data Sepadu Sdn Bhd, Impiana Sdn Bhd and Datuk Seri Ismail@Farouk Abdullah, as guarantors of the facilities.  

“At this juncture, it is too early to determine the financial and operational impact of the suit on the defendants as it depends on the outcome of the suit,” said Impiana in a bourse filing on Wednesday (June 14).

It added that the defendants are in consultation with their solicitors and will announce any material development in the suit in due course.

In the meantime, Impiana said it will begin negotiations with Public Bank to reach an amicable settlement.

Impiana’s net loss widened to RM3.63 million for the first quarter ended March 31, 2023 from  RM2.86 million a year earlier, despite revenue growing 61%, due to fee and expenses incurred for the redeemable convertible notes.

As at end-March, the group's short-term borrowings stood at RM4.88 million, and long-term borrowings at RM67.95 million.

Shares of Impiana closed flat at 8.5 sen on Wednesday, with a market capitalisation of RM42.25 million.