Scheme of Arrangement Pursuant to Section 176 of the Companies Act 1965 between Korakyat Plantations Sdn Bhd (In Liquidation) and the Purchasers for the Rehabilitation of Taman Perindustrian Subang Mewah.

Korakyat Plantations Sdn Bhd (In Liquidation)

Official Press Release

11 February 2003

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Proposed Scheme of Arrangement

between Korakyat Plantations Sdn Bhd (In Liquidation) and the Purchasers Pursuant To Section

176 of the Companies Act 1965

Prohibitory Injunction Orders were issued by Court on 22 January 2003against the implementation of a Proposed Scheme of Arrangement under Section 176 of the Companies Act 1965 upon the ex-parte applications by two parties, purporting to be aggrieved if the Proposed Scheme of Arrangement is implemented. It was also Ordered that the matter be subsequently heard in an inter-partes hearing for decision.

In today’s inter-partes hearing, the Court struck-out both applications for injunction in the two legal suits with costs.

The Proposed Scheme of Arrangement was introduced by the Liquidators of the developer, Korakyat Plantations Sdn Bhd (In Liquidation) for the rehabilitation of an abandoned property development project known as Taman Perindustrian Subang Mewah located at USJ 1, Subang Jaya, Selangor Darul Ehsan.

The Proposed Scheme of Arrangement was earlier approved by the purchasers of the Taman Perindustrian Subang Mewah by an overwhelming majority at a Court Convened Meeting which was held on 20 December 2002.

One of the Liquidators, Dr. Ler Cheng Chye of Messrs Ler Lum & Co. explained that the Proposed Scheme of Arrangement is a fair and practical solution to resolve the problems faced by the abandoned property development project. The striking out of the applications would allow the Winding-up Courtto decide on the sanction of the Proposed Scheme of Arrangement which is required under Section 176 of the Companies Act 1965 before it can be implemented.

Ler Lum & Co., an internationally affiliated firm of Chartered Accountants, is determined to play a positive role in the revival of the country’s economy since the last economic crisis, focussing in the area of legal, commercial and financial restructuring of abandoned property development projects into viable and competitive projects in the current economic environment. Taman Perindustrian Subang Mewah is a pioneer benchmark project for a number of other projects that is presently under the firm’s care. Details of the Proposed Scheme of Arrangement can be obtained from the firm’s office or its website, www.lerlum-jhi.com.

The Liquidators anticipate that the success of the Proposed Scheme of Arrangement would pave the way and become a model for rehabilitation of other abandoned property development projects in the country which normally face various legal, commercial and financial complications.

Queries on the above may be directed to:

Mr. Chiew Kin Wee or Ms. Sharon LengLer Lum & Co.
B-3-11, Megan Phileo Avenue
12, Jalan Yap Kwan Seng
50450 Kuala Lumpur.
Tel: 03 2715 1555 Fax: 03 2163 4609

Corporate Recovery Services

Korakyat Plantations Sdn Bhd (In Liquidation)