News

The Board of Directors of Tan Chong Motor Holdings Berhad (“TCMH” or “Company”) wishes to announce that its wholly-owned subsidiary, TCIE Vietnam Pte Ltd (“TCIEV”) had on, 23 August 2019 filed a Statement of Claim with the People’s Court of Cau Giay District, Ha Noi City, Vietnam against Nissan Vietnam Co., Ltd. (“NVL”), a joint venture company between ETCM (V) Pte Ltd, another wholly-owned subsidiary of TCMH, and Nissan Motor Co., Ltd., each holding 74% and 26% equity interest respectively in NVL, for the repayment of loan of VND218 billion (equivalent to approximately USD9.4 million) (“Loan”) together with interests pursuant to a Loan Agreement dated 5 June 2019 as supplemented by a supplemental letter entered into between TCIEV and NVL (“Statement of Claim”).

The Loan was extended to NVL to supplement NVL’s working capital. The Loan was disbursed to NVL. TCIEV had, on 15 August 2019, issued a Letter of Demand to NVL for the immediate repayment of the Loan together with incurred interests.  NVL failed to make repayment of the Loan together with the incurred interests and as such, TCIEV filed the Statement of Claim against NVL. 

The legal proceeding is not expected to have material financial and operational impact to TCMH Group for the current financial year.

Further announcements will be made from time to time in respect of any material developments on this matter.

This announcement is dated 23 August 2019.