| ETI TECH CORPORATION BERHAD |
| Type | Announcement | ||||||||||||||||||||||||
| Subject | PRACTICE NOTE 1 / GUIDANCE NOTE 5 NEW DEFAULT | ||||||||||||||||||||||||
| Description | ETI Tech Corporation Berhad (“ETICB” or “the Company”) Default in Payment pursuant to Practice Note 1 (PN1) of the Bursa Malaysia Securities Berhad Main Market Listing Requirements (“Main LR”) | ||||||||||||||||||||||||
1. Introduction
The Board of Directors of ETI Tech Corporation Berhad (“ETICB” or “the Company”) wishes to announce that ETI Tech (M) Sdn. Bhd. (“ETI Tech”), a wholly-owned subsidiary of the Company, had defaulted in payment pursuant to PN1 of the Main LR, where the total amount outstanding is more than 5% of the consolidated net assets of the Company and the details of the said credit facilities are as below:-
2. Reasons for Default
ETI Tech did not have sufficient funds to service the principal and interest due in respect of the credit facilities granted by SCB. The insufficient of fund was mainly due to the delay in collection and slowdown in current business.
3. Measures to address the Default
ETI Tech is negotiating with its bankers for the restructuring of its current credit facilities. ETI Tech is in the midst of re-strategizing an immediate action to overcome the current situation.
4. Financial and Legal Implications of the Default
ETI Tech has received Notice of Demand dated January 7, 2013 from the Solicitors of SCB, seeking to recover the entire outstanding amount as at December 31, 2012.
SCB will take legal action against ETI Tech of which in the worst-case scenario, a winding up petition might be filed against ETI Tech and ETICB (as corporate guarantor to the said credit facilities).
5. Business, Financial and Operational Impact of the Default
The Default might lead to discontinuity of the Group’s business operation. Despite the above, ETI Tech is strive to manage existing business with limited financing resources. The Management of ETI Tech has taken proactive measures to enhance its financial position to ensure continued operation.
6. Cross Default
The Default constitutes an event of default under the agreement for indebtedness with other creditor banks for ETI Tech, i.e. HLBB and MBB.
ETI Tech is in the midst of discussion with HLBB and MBB for rescheduling of the payment for the outstanding credit facilities granted by HLBB and MBB.
7. Major Subsidiary
ETI Tech is a major subsidiary of ETICB.
8. Solvency Declaration
The Management of ETICB is currently arranging a meeting with the Board of Directors to discuss on the solvency position of the Company. Upon obtaining directions from the Board of Directors, an announcement will be made accordingly.
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ETI TECH CORPORATION BERHAD
57-2, PERSIARAN BAYAN INDAH,
BAYAN BAY, SUNGAI NIBONG, PENANG
Tel: (60) 4 642 9887
Fax: (60) 4 645 6698
Transferred to Main Market: 20.04.2010
Listing Date: 28.03.2006
Par Value: 0.10
IPO Price: 0.45
Market: MAIN
Sector: TECHNOLOGY
Major Industry: ELECTRICAL EQUIPMENT
Company Brief:
ETI Tech Corporation Berhad (ETICB) is a Malaysia-based company principally involved in investment holding and providing management services. The Company has four wholly owned subsidiaries: ETI Tech (M) Sdn. Bhd. (ETI Tech), Power Mac Sdn. Bhd., ETI Tech International Sdn. Bhd., and Blithe Forest Limited. ETI Tech is engaged in the research and development, design and marketing of battery management system (BMS) for rechargeable energy storage solutions. On July 26, 2006, ETI Tech International Sdn. Bhd., acquired Blithe Forest Limited, which is involved in investment holding. On July 20, 2006, the Company acquired Vertex Cycle Sdn. Bhd., and changed its name to ETI Tech International Sdn. Bhd. It acts as an investment holding company, which carries out the international procurement/sourcing function for ETICB. On July 20, 2006, ETI Tech acquired Fusion Cycles Sdn. Bhd., and changed its name to Power Mac Sdn. Bhd. It is involved in battery packaging and products assembly.
