KUALA LUMPUR: Ireka Corp Bhd (ICB) was served with a writ of summons and statement of claim by RHB Bank Bhd following its default in repayment to the bank.
The bank is also claiming a total amount of RM6.53 million from ICB.
The bank had granted Ireka ENgineering & Construction Sdn Bhd (IEC) a revolving credit facility on Jan 6, 2015 and April 18, 2017 that amounted to RM6.50 million with a corporate guarantee executed on Sep 12, 2000 as security for the repayment of the banking facility offer.
Both parties entered into a settlement arrangement for the repayment.
However, RHB Bank had terminated the agreement on Dec 8, 2023 due to the alleged default in repayment obligations made by ICB.
"Following the termination of the abovementioned settlement agreement on Dec 8, 2023, the company has further proposed a revised scheduled payment to the bank on Dec 22, 2023.
"However, our proposed terms of repayment were not agreeable by the Bank on Jan 10, 2024.
It is still our intention to continue our efforts to discuss a repayment term which is acceptable by the bank and the company," stated ICB in a Bursa filing.
ICB noted it is in the midst of appointing a solicitor to defend the case.