Details of Announcement

General Announcement

Reference No MM-060329-43913

Submitting Merchant Bank	:	AMMERCHANT BANK BERHAD
Company Name	:	KIA LIM BERHAD
Stock Name	:	KIALIM
Date Announced	:	29/03/2006


Type	:	Announcement
Subject	:	KIA LIM BERHAD ("KIA LIM" OR "COMPANY") - DEBT RESTRUCTURING SCHEME ("DRS")

Contents :

This announcement is dated 29 March 2006.

Reference is made to our announcement dated 7 October 2005.

AmMerchant Bank Berhad (“AmMerchant Bank”) (a member of AmInvestment Group), on behalf of the Board of Directors of Kia Lim, wishes to announce that the Participating Bankers (namely, Malaysian Industrial Development Finance Berhad and RHB Bank Berhad) have, vide their letters dated 28 October 2005 and 28 March 2006, agreed to allow Kia Lim to repay by way of instalment (cash) the interest totaling RM929,000 (instead of immediate full settlement by way of cash as stipulated in Clause 3.1(k) and Clause 5 of the Debt Restructuring Scheme (“DRA”) in relation to the DRS entered into on 3 October 2005), over the period similar to that of the restructured term loan as stipulated in the DRA. For information purposes, the Participating Bankers pursuant to the DRA agreed to reschedule 40% of their term loan principal amount owing as at 31 December 2002 into instalments of between 69 and 77 months.

The RM929,000 is part of the interest accrued (on the term loan principal amounting RM39,290,000 which is under restructuring under the DRS) after the Second Cut-off date (i.e 31 December 2003) from 1 January 2004 to 31 December 2005. Thereafter, the remaining accrued interest from 1 January 2006 until the completion of the DRS is to be paid in cash.

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