(I) WINDING-UP PETITION ON PENGANGKUTAN AWAM PUTRAJAYA TRAVEL & TOURS SDN BERHAD, A SUBSIDIARY OF THE COMPANY ("PAPTT") BY RAISEVEST SDN BHD ("RAISEVEST")(II) WINDING UP NOTICE ON PAPTT BY ZAM O LIMA SDN BHD

GETS GLOBAL BERHAD

Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-01072020-00001
Subject (I) WINDING-UP PETITION ON PENGANGKUTAN AWAM PUTRAJAYA TRAVEL & TOURS SDN BERHAD, A SUBSIDIARY OF THE COMPANY ("PAPTT") BY RAISEVEST SDN BHD ("RAISEVEST")(II) WINDING UP NOTICE ON PAPTT BY ZAM O LIMA SDN BHD
Description
ANNOUNCEMENT PURSUANT TO PARAGRAPH 9.04(f) OF THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD ("MMLR")
-	Reply to Query
Query Letter Contents

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

 

1.       The date of presentation the Winding-up Petitions.

2.       The interest rate on the amount claimed for.

3.       The details of default or circumstances leading to the commencement of Winding-up Petitions.

4.       The estimated potential liability to the group arising from the Winding-up Petitions.

5.       The financial and operational impact of the Winding-up Petitions on the Group.

6.       A confirmation as to whether PAPIT is a major subsidiary.

7.       The expected losses, if any arising from the Winding-up Petitions.

8.       The total cost of investment in PAPTT.

 

 

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

 

 

Yours faithfully,

 

 

LISTING

REGULATION

 

Cc : Market Surveillance Dept. , Securities Commission (via fax)

Further to the announcements made on 24 June 2020 and 29 June 2020, and the letter of enquiry from Bursa Malaysia dated 1 July 2020, the Company wishes to provide additional information in respect of the following litigation cases;

 

WINDING-UP PETITION ON PENGANGKUTAN AWAM PUTRAJAYA TRAVEL & TOURS SDN BERHAD, A SUBSIDIARY OF THE COMPANY ("PAPTT") BY RAISEVEST SDN BHD ("RAISEVEST")

1. The date of presentation the Winding-up Petition.

  •     24 June 2020

2. ‚ÄčThe interest rate on the amount claimed for.

  •     The interest rate is 5% per annum calculated on daily basis.

3. The details of default or circumstances leading to the commencement of Winding-up Petitions.

  • A sum of RM 577,644.70 was outstanding and overdue at the point of acquisition of PAPTT on 11 December 2017. Post-acquisition upon review of the original contract and state of the deliverables, there were issues of concern leading to a report being filed to the MACC. On 3rd. September, 2018 Raisevest filed an originating summons seeking to claim an amount of RM 536,363.15. We contested the claim because of the issues of concern. However, on 12 July 2019, a final judgement of the Kuala Lumpur High Court was granted in favour of Raisevest. We have since filed an appeal to the Court of Appeal which is still at case management stage with the next case management date fixed on 23 July 2020 to update the court on the status of filing of the Records of Appeal. We are also still awaiting the Grounds of Appeal from the High Court. In the meantime, Raisevest on 23 September 2019 obtained a garnishing order ex parte and managed to recover a sum of RM 138,845.33 through this action. On 24 June 2020 we received via our Company Secretary the Winding-Up petition based on unpaid debt of RM 422,546.47.

4.   The estimated potential liability to the group arising from the Winding-up Petitions.

  • In the books of PAPTT, the amount of outstanding liability to Raisevest is currently recorded as RM 397,514.76. Should the petition be granted by the court a further liability of RM 25,031.71 will be incurred plus additional interest charges and costs to date of settlement

5. The financial and operational impact of the Winding-up Petitions on the Group.

  • The financial impact of the petition, if granted, will be an outflow of cash funds amounting to RM 422,546.47 plus further interest charges and costs granted. There is no operational impact.

6.  A confirmation as to whether PAPIT is a major subsidiary.

  • Yes

7. The expected losses, if any arising from the Winding-up Petitions.

  • The expected loss is the additional liability of RM 25,031.71 to be incurred plus further interest and costs granted.   

8. The total cost of investment in PAPTT.

  • 80% equity interest in PAPTT was acquired on December 11, 2017 for a nominal sum of RM 1. PAPTT had negative NTA of RM 11,687,387 at point of acquisition (based on subsequent audited account at 31 December 2017).

 

WINDING-UP NOTICE ON PAPTT BY ZAM O LIMA SDN BHD (“ZLSB”)

1. The date of presentation the Winding-up Notice.

  • 29 June 2020

2. The interest rate on the amount claimed for.

  • The interest rate is 5% per annum calculated on daily basis

3. The details of default or circumstances leading to the commencement of Winding-up Petitions.

  • A sum of RM 390,295.00 was overdue and outstanding at the point of acquisition of PAPTT on 11 December 2017. Post-acquisition, PAPTT continued to trade with Zam-O-Lima (“Litigant”) which was a supplier of bus tyres. On 18 March 2019 Litigant filed an Originating Summons for the sum of RM 426,525.80. Negotiations were held and Litigant agreed to a settlement via monthly payments but did not respond to our request for the settlement agreement to be confirmed in writing. Unbeknown to us, Litigant obtained a Judgement-in-Default which we were not successful to set aside. Since then our attempts to offer a settlement to Litigant was not met with a response until receipt of the Notice To Wind-Up on 29 June 2020.

4. The estimated potential liability to the group arising from the Winding-up Petitions.

  • In the books of PAPTT, the amount of outstanding liability to Zam-O-Lima is currently recorded as RM 401,390.74. Should the notice proceed to a petition which is granted by the court a further liability of RM 26,315.67 will be incurred plus additional interest charges and costs to date of settlement

5. The financial and operational impact of the Winding-up Petitions on the Group.

  • The financial impact of the notice if it proceeds to a petition to wind up which is granted will be an outflow of cash funds amounting to RM 427,706.41 plus further interest charges and costs granted. There is no operational impact.

6. A confirmation as to whether PAPIT is a major subsidiary.

  • Yes

7. The expected losses, if any arising from the Winding-up Petitions.

  • The expected loss is the additional liability of RM 26,315.67 to be incurred plus further interest and costs granted.  

8. The total cost of investment in PAPTT.

  • 80% equity interest in PAPTT was acquired on December 11, 2017 for a nominal sum of RM 1. PAPTT had negative NTA of RM 11,687,387 at point of acquisition (based on subsequent audited account at 31 December 2017).

 

 

This announcement is dated 1 July 2020.





Announcement Info

Company Name GETS GLOBAL BERHAD
Stock Name GETS
Date Announced 01 Jul 2020
Category General Announcement for PLC
Reference Number GA1-01072020-00125