News

Kuala Lumpur High Court Civil Suit Meridien Shore Sdn Bhd -V- Boustead Naval Shipyard Sdn Bhd

General Announcement

Reference No BH-080703-59593

Company Name	:	BOUSTEAD HOLDINGS BERHAD
Stock Name	:	BSTEAD
Date Announced	:	03/07/2008

Type	:	Announcement
Subject	:	Kuala Lumpur High Court Civil Suit Meridien Shore Sdn Bhd -v- Boustead Naval Shipyard Sdn Bhd

Contents :

Meridien Shore Sdn Bhd -v- Boustead Naval Shipyard Sdn Bhd

The Company wishes to announce that its subsidiary, Boustead Naval Shipyard Sdn Bhd ("BNS"), had on 30 June 2008 been served with a Writ of Summons by one Meridien Shore Sdn Bhd ("Meridien"). The said Writ of Summons was filed in the Kuala Lumpur High Court on 3 June 2008.

Under the said Writ of Summons, Meridien is claiming against BNS for specific damages in the amount of RM49,577,510.10, interest at 8% per annum on the said amount of RM49,577,510.10, general damages, cost and other relief that the Court deems fit over alleged losses suffered by Meridien arising from foreclosure of several of its lands in Johor ("Lands") by Bank Kerjasama Rakyat Malaysia Berhad ("Bank Rakyat").

Meridien is alleging that it had created third party charges over the Lands as a form of security for a financing facility granted by Bank Rakyat to BNS for the sum of RM15 million. It was also alleged by Meridien that Bank Rakyat foreclosed and auctioned off the Lands because BNS had defaulted on its repayment obligations to Bank Rakyat.

BNS has appointed solicitors to handle this case while its Directors, in consultation with the solicitors, are of the view that BNS has a good defence to this claim by Meridien.

The Company will announce further updates on this case from time to time.