Announcement Details/Table Section :
The Board of Directors of Hexagon Holdings
Berhad (the "Company") wishes to announce that
a restraining order has been granted by the
High Court of Malaya in Kuala Lumpur ("High
Court") on 19 January 2012 pursuant to Section
176(10) of the Companies Act 1965 (the "Act"),
to restraint all further proceedings, and any
and all actions or proceedings against Hexagon
Tower Sdn. Bhd. ("HTSB"), a wholly-owned
subsidiary company of the Company, and Hexagon
Engineering Construction Sdn. Bhd. ("HEC"), a
wholly-owned subsidiary company of HTSB, for a
period of thirty (30) days until 18 February
2012 ("Restraining Order").
The Board also wishes to advise that during the
hearing, there was an intervention and
objection to the application of the Restraining
Order from OCBC Bank (Malaysia) Berhad
("OCBC"). The High Court has fixed further
hearing on 10 February 2012 for OCBC to appear
and submit to the court via an affidavit to
explain as to why they should be specifically
treated so that the Restraining Order does not
apply to them.
At the same hearing today, HTSB and HEC have
also obtained an order to convene a court
convened meeting under Section 176(1) of the
Act with their respective unsecured trade and
other creditors ("Scheme Creditors") within the
aforesaid period to seek their respective
Scheme Creditors' approval for the
implementation of a scheme of arrangement
("Proposed Scheme"). For this purpose, the
Company is in the midst of finalising the
respective Proposed Scheme to be presented
before HTSB's and HEC's Scheme Creditors, with
its appointed advisers and the details of the
Proposed Scheme will be announced then.
HTSB and HEC, both being in the engineering and
construction sector, have experienced
difficulties in their businesses as a result of
their cash flow, debt position and unfavourable
market conditions, giving rise to various
pending and threatened legal proceedings
against HTSB and/or HEC. In view of this, the
compromise to be proposed via HTSB and HEC is
aimed to ensure that the settlement to HTSB's
and HEC's Scheme Creditors can be achieved in
an orderly fashion.
The Restraining Order is not expected to have
any material impact on the financial and
operational matters of the Company, as the
Restraining Order is to facilitate and finalise
HTSB's and HEC's Proposed Schemes.
This announcement is dated 19 January 2012.
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