Affin Bank Berhad (the “Bank” or “ABB”) wishes to announce that the Bank and its wholly-owned subsidiary, Affin Hwang Investment Bank Berhad (“AHIBB”), together with another bank (collectively  the “Participating Banks”) are the syndicated lenders in the syndicated facility for the sum of up to RM165 million (“Syndicated Facility”) comprising revolving credit (“RC”) facility, letter of credit (“LC”) facility and bank guarantee (“BG”) facility granted to  Zecon Berhad (“Zecon”).

Under the Syndicated Facility, the Bank granted RC and LC facilities in the sum of RM15 million and RM50 million respectively whilst AHIBB had granted a BG facility in the sum of RM25 million.  Zecon defaulted in its payment of the Syndicated Facility and the Participating Banks filed a claim for the amount owing of RM102,785,249.87, of which approximately RM33 million are attributable to the Bank and AHIBB.

Zecon filed its Defence and Counter-claim (“Counter-claim”) claiming amongst others, return of the 3rd party charge document given to secure the Syndicated Facility, general damages and costs against the Participating Banks.   The Court had on 29 April 2019 fixed the matter for Case Management on 29 May 2019.

The Bank are of the view that save for the orders, cost and relief sought by Zecon which will only materialize if the Court rules in Zecon’s favour, the Counter-claim is not expected to result in any immediate losses, material, financial and operational impact on the Bank.