MBSB Bank Bhd has served Perwira Awan Sdn Bhd, a wholly owned subsidiary of KNM Group Bhd, with an originating summons over an outstanding Islamic financing facility amounting to RM116.1 million.
In a Bursa filing, KNM said the summon was filed by the bank at the Kuantan High Court as MBSB is seeking a court order to auction off land owned by Perwira Awan to recover the outstanding amount.
The case revolves around a default on an Islamic Term Financing-i facility worth RM123 million in which as security for the loan, Perwira Awan had charged a parcel of land in Mukim Sungai Karang, Kuantan, to MBSB through two charges registered in 2015 and 2020.
KNM said it is currently seeking legal advice on the matter and will determine its next course of action based on the counsel received.
The High Court has set April 15, as the hearing date for the originating summons.
KNM said it will make further announcements as developments unfold.
