We refer to the announcement made on 13 December 2013 regarding the above matter.
The Directors hereby announce that on 10 April 2014, Megasteel Sdn Bhd (“Megasteel”), a subsidiary of the Company, and Tenaga Nasional Berhad (“TNB”) had mutually agreed to a settlement of the financial claim made by TNB and that a consent judgment had been recorded at the High Court of Malaya on even date, which include the following terms:
1. Megasteel has been given a 12 months moratorium from 1 April 2014 to pay the judgment sum and that it shall commence the scheduled payment of the judgment sum by 24 monthly instalments from 1 April 2015;
2. The judgment sum of RM305,627,234 is inclusive of overdue interest and interest for the moratorium at the rate of 8.6% per annum;
3. Subject to the approvals of the Company’s shareholders and lenders, the Company to provide a corporate guarantee for the sum of RM30 million; and
4. Effective 1 April 2014, the supply of electricity by TNB shall be on an advance payment basis.