KUALA LUMPUR (Aug 22): MBSB Bank Bhd is suing Country Heights Holdings Bhd, following its default on the payment of Islamic term financing facilities totalling RM89.67 million, to recover the sum owed.
In a bourse filing on Tuesday (Aug 22), Country Heights said the group had on Monday (Aug 21) received a writ of summons, statement of claim and notice of case management from the solicitors acting for MBSB.
According to Country Heights, MBSB is claiming for total sales price outstanding and payable under Term Financing-i amounting to RM89.67 million as of Aug 1.
This is accompanied by claims for Ta’widh (compensation charge) at a rate of 1% per annum calculated from Aug 2 until the maturity of the term financing or the date of judgement, another Ta’widh at the prevailing Islamic Interbank Money Market rate, and a late payment charge at a rate of 5% per annum, all on the base amount of RM77.26 million — calculated from the maturity date of the Term Financing-i until full settlement or date of the court judgement.
Country Heights said the Shah Alam High Court has fixed Sept 18 for case management.
Last week, Country Heights announced that it had defaulted on the payment of Islamic term financing facilities totalling RM89.67 million provided by MBSB.
The default was by its indirect wholly-owned units, Mines Waterfront Business Park Sdn Bhd (MWBP) and Mines International Exhibition Centre Sdn Bhd (MIEC), in respect of a charge created as security for an Islamic term financing facility and a bridging financing facility.
Country Heights attributed the default to differences in cash flow timing due to delays in client payments, resulting in a temporary cash-flow constraint. The group also said the default was linked to a winding-up petition issued against MWBP, which it said led to MBSB recalling the financing facilities the bank granted to MWBP.
Shares in Country Heights ended unchanged at 32 sen on Tuesday, giving the group a market capitalisation of RM95.36 million.