| (a) |
The Writ of Summons and Statement of Claims dated 13 July 2004 was filed in the Kuala Lumpur High Court as Suit No. D3-22-944-2004 and was served on PIB on 3 August 2004. |
| (b) |
The Plaintiff's claims amounted to RM2,537,155 together with 8% interest per annum from 1 April 2003 until the date of full payment plus cost and any other relief set by the Court. |
| (c) |
The details of the circumstances leading to the filing of the litigation against PIB is as follows: |
| |
On 7 August 2002, part of the building belonging to an Insured was damaged by fire. The Insured subsequently made a claim against PIB under a fire insurance policy issued by PIB. The property insured under the policy was charged to Malayan Banking Berhad. |
| |
On 11 March 2003, PIB settled the claim at RM2,537,155 and payment was made to the Insured. |
| |
On 24 March 2004, PIB received a letter of demand from Malayan Banking Berhad, requesting PIB to pay the sum of RM2,537,155 to Malayan Banking Berhad pursuant to Mortgagee/Chargee clause of the policy. |
| (d) |
The litigation will not have any operational impact on the PacificMas Group ("the Group"). |
| |
On the worst case scenario, the litigation may reduce the consolidated net tangible assets per share of the Group by approximately 1.87 sen based on the audited consolidated balance sheets as at 31 December 2003. |
| |
On the worst case scenario, the litigation may reduce the consolidated earnings per share of the Group by approximately 1.87 sen for the financial year ending 31 December 2004. |
| (e) |
In the event PIB loses the case, the expected losses arising from the litigation are RM2,537,155 together with 8% interest per annum from 1 April 2003 until the date of full payment plus cost and any other relief set by the Court including legal cost to be incurred by PIB. |
| (f) |
PIB has taken legal advice on the claim by the Plaintiff and has been advised that PIB is not liable to pay the claim by the Plaintiff. |
| (g) |
PIB has taken legal counsel to respond to the above matter and the claim will be contested vigorously. |
