KUALA LUMPUR (March 17): R&A Telecommunication Group Bhd said the properties of its wholly-owned unit will be auctioned off to settle a sum of RM31.24 million owing to Maybank Islamic Bhd.

In a filing with Bursa Malaysia, R&A said the High Court in Shah Alam had allowed the bank’s application to dispose of the properties via an auction. The auction is scheduled to be held at the court on May 5.  

This follows the failure by the subsidiary R&A Telecommunication Sdn Bhd (RASB) to settle the financing it had obtained from the bank, that was secured by a charge on its properties located in Mukim Damansara in Selangor’s Petaling district.

R&A said the operational impact of the court order on the group is minimal, as the business activities that were being carried out at the properties have ceased.

“Financially, the group will record a gain or loss on disposal, depending on whether the sale price of the properties at the auction is higher or lower than the carrying value,” it said.

R&A triggered Guidance Note 3 (GN3) of the ACE Market Listing Requirements of Bursa Malaysia Securities last year. This was after auditors expressed a disclaimer opinion, highlighting areas of concern with its financial accounting in the company’s audited financial statements for the year ended Dec 31, 2014.

R&A has 12 months to submit a regularisation plan to Bursa Securities and obtain the bourse’s approval to implement the plan.

Today, R&A said it will address the court order via its regularisation plan.

“Once the regularisation plan is finalised, a settlement is proposed to be put forward to our creditors,” the filing said.