Ireka Corporation Berhad (Ireka Corp) announced that it was served with a writ of summons and statement of claim by RHB Bank Berhad today (Feb 13) through its solicitors, Messrs Raja, Darryl & Loh.
In a Bursa filing today detailing the circumstances of the suit, the company said the bank had on Jan 6, 2015 and April 18, 2017 granted Ireka Engineering & Construction Sdn Bhd (Under Liquidation) (IEC) a revolving credit facility of RM6.5 million with a corporate guarantee executed on Sept 12 in favour of the bank as security of the repayment of the credit facility.
“The company had on June 28, 2023 entered into a settlement arrangement with the bank to undertake to pay to the bank a payment of all monies owing by IEC under the credit facility.
“As it was alleged that the company have defaulted in its obligations to make such payments to the bank as required under the settlement arrangement, the bank had terminated the same on Dec 8, 2023.
Ireka Corp said the bank now claims the total amount of around RM6.53 million against the company.
“Following the termination of the abovementioned settlement agreement on Dec 8, the company has further proposed a revised scheduled payment to the bank on Dec 22, 2023.
“However, our proposed terms of repayment were not agreeable by the bank on Jan 10, 2024. It is still our intention to continue our efforts to discuss a repayment term which is acceptable by the bank and the company.
“The company is in the midst of appointing a solicitor to act on behalf of the company to defend the case,” it added.
