RCE CAPITAL BERHAD (RCE OR COMPANY)
- Disclosure pursuant to Chapter 9 of Bursa Malaysia Securities Berhads Main
Market Listing Requirements
The Company wishes to inform that Koperasi Wawasan Pekerja-Pekerja Berhad
(KOWAJA) has on 26 November 2010 advised that they will not be making any
further loan disbursements from 1 December 2010 onwards. KOWAJA is currently
the largest borrower of RCE Marketing Sdn Bhd (RCEM), a wholly-owned subsidiary
of RCEM, and provides personal loans to its members (who are primarily in the
civil service) via an on-lending arrangement in relation to the funds borrowed
from RCEM.
Following enquiries made by RCEM, KOWAJA has informed that they have been
requested to submit a plan to Suruhanjaya Koperasi Malaysia (SKM) for complete
endorsement of KOWAJAs compliance with SKMs applicable guidelines. Until such
endorsement, KOWAJA will temporarily cease disbursement of loans from 1
December 2010 onwards.
At the same time, KOWAJA has given its assurance that all loans disbursed up to
30 November 2010 will continue to be serviced via the regular collection
mechanism. RCEM has also not observed any disruptions in the same. Meanwhile,
KOWAJA is working closely with SKM towards an expedient resolution of the
temporary disruption in their operations.
As such, the Company does not expect the above to have any material financia
impact to the group in relation to the current financial year ending 31 March
2011 and on its ability to meet interest and principal payments in respect of
its existing debt obligations.
However, if KOWAJAs loan disbursements are curtailed in a prolonged manner,
there may be some impact on the groups future profitability in the longer-term.
We will keep the market informed as and when there are further materialdevelopments on the above.
This announcement is dated 26 November 2010.
You are advised to read the full contents of the announcement or attachment at
http://www.bursamalaysia.com.