KUALA LUMPUR (Aug 14): Khee San Bhd has updated that the loan facility it obtained from Bank of China (M) Bhd (BOC) — under which it owes RM14.62 million in outstanding repayments — is not secured by assets of the company.

As such BOC stands as unsecured creditors, the candy manufacturer said in a filing in response to a Bursa Malaysia  query on the notice of default of payment announced by the company on Aug 8.

In its announcement, Khee San alleged that BOC had committed a breach of conduct after taking legal action against the company and its wholly-owned subsidiary Khee San Food Industries Sdn Bhd (KSFI) for the default of payment of the RM14.62 million.

Khee San claimed that the suit was in fact filed one day prior to a meeting held with the bankers on Aug 2, and that BOC kept silent on the filing of the suit throughout the meeting.

Khee San’s share price closed one sen or 5.13% lower at 18.5 sen today, for a market capitalisation of RM21.16 million. The stock has retreated 68% year to date.