MP Corp tumbles on getting winding-up petition from RHB Bank

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KUALA LUMPUR (Feb 21): Malaysia Pacific Corp Bhd (MP Corp) shares tumbled 33.33% this morning after it was served with a winding-up petition by RHB Bank Bhd, demanding repayment of debt totalling RM118.16 million.

At 9.27am, MP Corp fell 4 sen to 8 sen with 75,000 shares done.

The case management is fixed for today, MP Corp said in a stock exchange filing yesterday.

“The company will be seeking legal advice on the above and will make further announcement in due course,” it added.

On June 14, 2016, MP Corp had received a notice of statutory demand from RHB Bank, seeking the repayment of the debt or risk winding-up petition proceedings taken against the company.

The sum comprises RM43.64 million in revolving credit facilities and two overdraft facilities amounting to RM74.52 million as at June 8, 2016.

The bank is also demanding for interest to be calculated at 3.5% per annum, plus the base lending rate on monthly rest from June 9, 2016 onwards, until the date of full settlement.

Additionally, it is seeking interest of 3% per annum on the principal sum of RM25.7 million, plus the cost of fund, to be calculated from June 9, 2016 until the date of full settlement.