KUALA LUMPUR (Sept 7): Ageson Bhd, which is being sued by RHB Bank Bhd over a loan default, said it was of the view that it was entitled to a moratorium on the repayments of the loan during the Movement Control Order period.

"But RHB did not take into consideration on granting [the] moratorium to the company in regard to the loan repayments," the group said in a bourse filing.

Ageson said before the suit was filed, the group had been in constant discussions with RHB and "numerous proposals on restructuring the settlement of the sum were proposed".

But it said the bank proceeded with the service of the writ and statement of claim without formally informing the group that it would be initiating the legal action.

Ageson said it believes the group has the financial capability to settle the sum claimed by RHB and will continue to discuss with the bank to resolve the issue.

Last Friday, Ageson announced that RHB had filed a suit against the group and its wholly-owned subsidiary Ageson Development Sdn Bhd over the RM33 million term loan obtained by the subsidiary and guaranteed by the group.

RHB is seeking RM20.8 million as at July 31, with a 3.5% interest per annum above the bank's base lending rate from Aug 1 until the date of full settlement.

In its filing today, Ageson reaffirmed that it has sufficient working capital cash flow to manage its current operations, as well as payment obligations to its creditors.

"As such, the company is of the view that it is solvent as it will be able to service all its debts as and when they fall due in the next 12 months," it added.

Ageson's share price settled half a sen or 3.45% lower at 14 sen today, giving a market capitalisation of RM127.24 million. The counter saw 34.65 million shares traded.