Ireka Corporation Bhd is being sued by RHB Bank Bhd for RM6.53 million for alleged default in payments under a settlement arrangement.
In an exchange filing, Ireka said it was served with a writ of summons and statement of claim by RHB Bank through their solicitors, Messrs Raja, Darryl & Loh.
In the filing, it said RHB had on Jan 6, 2015 and April 18, 2017 granted Ireka Engineering & Construction Sdn Bhd (Under Liquidation) (IEC) a revolving credit facility of RM6.5 million with a corporate guarantee executed on Sept 12, 2000 in favour of the bank as security for the repayment of the banking facility offer.
It said Ireka had on June 28, 2023 entered into a settlement arrangement with the bank to pay all monies owed by IEC under the facility.
Ireka had allegedly defaulted on the payment and the bank terminated the facility on Dec 8, 2023.
Ireka said it had proposed a revised scheduled payment but it was not agreeable by the bank, adding that it was still its intention to continue its efforts to discuss a repayment term acceptable by the bank and the company.