KUALA LUMPUR (Nov 27): London Biscuits Bhd is being sued by RHB Bank Bhd over a sum of RM22.66 million allegedly owed by the Practice Note 17 (PN17) firm.

The amount includes RM4.36 million which London Biscuits is allegedly to owe the bank for an overdraft facility, RM3.94 million for a multi trade line facility and RM14.36 million for a revolving credit facility.

The bank is also claiming interests and other costs or further reliefs.

London Biscuits, in its stock exchange filing today, said it is “assessing the significant impact of the claim on the business, financial and operations of the remaining business of the group”.

On Nov 12, London Biscuits announced it had defaulted on principal payments to RHB amounting to RM22.52 million.

The group previously announced that it had defaulted on payments amounting to RM89.19 million to seven banks between June 19 and Sept 20, bringing its default tally to RM111.71 million as at Nov 12.

The seven banks are Bank Islam Malaysia Bhd, Bank of China (Malaysia) Bhd, Malayan Bank Bhd, United Overseas Bank Bhd, OCBC Bank (Malaysia) Bhd, OCBC Al-Amin Bank Bhd and HSBC Bank Malaysia Bhd.

London Biscuits, whose shares settled unchanged at 9.5 sen today, is currently facing a winding-up petition.

Lim San Peen of PricewaterhouseCoopers Advisory Services Sdn Bhd has been appointed the interim liquidator.