- 30-04-2008: Kosmo served with notice of demand for repayment of RM52m loan plus interest
PETALING JAYA: Kosmo Technology Industrial Bhd was served a notice of demand on April 30 by solicitor acting on behalf of EON Bank Bhd for the repayment of loan together with interests payable amounting to RM52.03 million by May 6.
Legal proceedings will be instituted against Kosmo if it fails to repay the loan by the stipulated deadline.
According to Kosmo, the reason for the issuance of the said notice was the failure by the company to service the interest payment due and payable resulting in a situation of default under the facility agreement dated Sept 9, 2005.
"The default herein has also give rise to a possible recall (cross default) of the loan facility amounting to RM30 million granted by RHB Investment Bank Bhd pursuant to a facility agreement dated Jan 8, 2007.
"However, no claim has been received as yet from RHB Investment Bank. Both the loan facilities mentioned above are unsecured term loan facilities granted to Kosmo," added the company's announcement.
Kosmo said it was currently encountering cash flow problems and had been unable to meet its obligations in payment of loans and to creditors.
The company is planning to embark on a debt restructuring exercise to address the claims by the lenders as well as creditors and has initiated discussions with parties involved in claiming against Kosmo.
It expected discussion to take about two to three months before any concrete restructuring plans could be formalised.
Couple days later, the Edge highlighted an article called 12 report accounts deviations in a day and on the Star Bizweek, Erral Oh wrote the following Audit-related issues – a yearly affair and I wrote a blog posting on it, Unaudited and Audited Accounts: UnReal or Real?, and Kosmo Technology was one of the companies mentioned.
This morning, I caught the following news clip, Kosmo: We made a loss in 2007
- KOSMO Technology Industrial Bhd has revised its report card, saying it now made a net loss of RM141.71 million in the year ended December 31 2007. In February, Kosmo announced an unaudited net profit of RM1.4 million on RM38.42 million turnover for the recent year. Audited group turnover is at RM44.18 million, Kosmo told Bursa Malaysia yesterday. The company also said its annual report 2007 will be delayed.
Truly unbelievable!
From a profit of 1.4 million to a net loss of rm141.71 million!
Holy cow!
And Kosmo last traded at 4 sen!
Now take a look at how much Kosmo was trading at 2 years ago!
And here is a close-up on how Kosmo has fared the past one year!
Totally shambolic!
Given the truly incredible massive capital destruction, perhaps the SC should investigate and find out what on earth is happening here and why is there such a massive deviation in their accounts!
Another truly sad day for Bursa Malaysia.
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