Talam Corporation Bhd, which was allegedly bailed out by the Selangor government, today refuted MCA’s bailout claims, saying that deputy minister Chua Tee Yong’s claims were “baffling”.
In a statement late today, Talam said it got out of debt on its own and had done so by completing a regularisation plan approved by the Securities Commission on July 1, 2009.
“This was well before the agreement between the state and Talam for the settlement of debt via land. Hence it is wholly untrue to allege that there was a bailout of Talam by the state using the rakyat’s money,” its chairperson Tsen Keng Yam said.
Yesterday, Chua (left in photo), who is also an MCA central committee member, suggested that Talam, known as Trinity Corporation Bhd, got itself out of the PN17 status on Bursa Malaysia due to an injection of state funds.
The PN17 status indicates that a listed company is financially ailing.
Additionally, Tsen said that Chua had “laboured under a misconception” when he claimed that the state had purchased at least RM260 million additional assets from Talam.
He said that while it is true that Talam had disposed of RM676 million worth of land to the state to pay off its debts to the state entities, the sum was entirely to cover the RM392 million worth of debt.
Tsen said the value of the land does not exactly match the debt to take into account encumbrances attached to the land, “as is the normal commercial practice”.
“It was not possible for (Talam)... to dispose of the land equivalent to the sum owing to the state as the lands were charged to financial institutions,” he said.
Deal cleared by SC and Bursa
He conceded that there was a “very small” but unspecified sum which remained as surplus due to Talam and this was used to settle costs and statutory payments from the settlement.
“It is pertinent that we state that the above transaction was disclosed in an extraordinary general meeting of Trinity Corporation Bhd and a legally binding agreement exists between the state and Trinity.
“Hence, the fact that this transaction was a bona fide transaction is indisputable,” he said.
Tsen added that the Securities Commission Asset Valuation Department and Bursa Securities Berhad were involved in determining the value of the land.
“There is certainly no room to harbour a doubt with regard to the validity and truthfulness of this transaction,” he said.
In a statement late today, Talam said it got out of debt on its own and had done so by completing a regularisation plan approved by the Securities Commission on July 1, 2009.
“This was well before the agreement between the state and Talam for the settlement of debt via land. Hence it is wholly untrue to allege that there was a bailout of Talam by the state using the rakyat’s money,” its chairperson Tsen Keng Yam said.
Yesterday, Chua (left in photo), who is also an MCA central committee member, suggested that Talam, known as Trinity Corporation Bhd, got itself out of the PN17 status on Bursa Malaysia due to an injection of state funds. The PN17 status indicates that a listed company is financially ailing.
Additionally, Tsen said that Chua had “laboured under a misconception” when he claimed that the state had purchased at least RM260 million additional assets from Talam.
He said that while it is true that Talam had disposed of RM676 million worth of land to the state to pay off its debts to the state entities, the sum was entirely to cover the RM392 million worth of debt.
Tsen said the value of the land does not exactly match the debt to take into account encumbrances attached to the land, “as is the normal commercial practice”.
“It was not possible for (Talam)... to dispose of the land equivalent to the sum owing to the state as the lands were charged to financial institutions,” he said.
Deal cleared by SC and Bursa
He conceded that there was a “very small” but unspecified sum which remained as surplus due to Talam and this was used to settle costs and statutory payments from the settlement.
“It is pertinent that we state that the above transaction was disclosed in an extraordinary general meeting of Trinity Corporation Bhd and a legally binding agreement exists between the state and Trinity.
“Hence, the fact that this transaction was a bona fide transaction is indisputable,” he said.
Tsen added that the Securities Commission Asset Valuation Department and Bursa Securities Berhad were involved in determining the value of the land.
“There is certainly no room to harbour a doubt with regard to the validity and truthfulness of this transaction,” he said.
Tsen also denied that RM115 million is still owed to Kumpulan Hartanah Sdn Bhd.
Chua yesterday claimed that the state had paid more than RM260 million in state funds to bail out ailing construction company Talam.
He claimed that the value of the land and a RM392 million supplementary budget obtained by the state to facilitate the debt restructuring exercise indicate a scandal worth a whopping RM1 billion.
Selangor earlier today announced that it will sue MCA for its allegations.
He claimed that the value of the land and a RM392 million supplementary budget obtained by the state to facilitate the debt restructuring exercise indicate a scandal worth a whopping RM1 billion.
Selangor earlier today announced that it will sue MCA for its allegations.
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