Bank Islam secures summary judgement against Ivory Properties over RM17.76 mil loan

• The High Court’s decision followed Bank Islam’s application under Order 14 of the Rules of Court for the summary judgement against Ivory Properties, according to Ivory Properties’ bourse filing on Thursday (June 19). Allowing a summary judgement means the court allows a party’s application to have a judgement against another without going for a full trial.

KUALA LUMPUR (June 19): Bank Islam Malaysia Bhd (KL:BIMB) has obtained a summary judgement against Ivory Properties Group Bhd (KL:IVORY) in a suit involving unpaid financing facilities.

The High Court’s decision followed Bank Islam’s application under Order 14 of the Rules of Court for the summary judgement against Ivory Properties, according to Ivory Properties’ bourse filing on Thursday (June 19). Allowing a summary judgement means the court allows a party’s application to have a judgement against another without going for a full trial.

The legal action against Ivory Properties, which has been classified under Practice Note 17 (PN17) for financially distressed companies, stemmed from two financing facilities the bank granted to it, with a total outstanding sum of RM17.76 million. Bank Islam terminated the facilities in October last year and demanded full repayment of the loan within 14 days, which Ivory Properties failed to settle.

In December, the group said it was working on selling its non-core business assets to raise funds to settle the owed amount.

A month earlier, Bank Islam initiated the lawsuit against the group. Besides Bank Islam, Ivory Properties has also been sued by BIMB over an outstanding payment of RM19.8 million.

Last month, Ivory Properties said it had sold a double-storey detached commercial building known as The Birch House in George Town, Penang for RM18 million to settle its bank borrowings.

Ivory Properties slipped into PN17 status in August 2022 after its external auditor Messrs KPMG PLT issued a disclaimer of opinion on the company’s financial statements for the financial year ended March 31, 2022 (FY2022) and raised doubts regarding Ivory Properties' ability to continue as a going concern.

Ivory Properties' share price closed down half a sen or 25% to 1.5 sen on Thursday, bringing the group a market capitalisation of RM7 million. Bank Islam settled seven sen or 3.11% higher at RM2.32, giving the group a market capitalisation of RM5.26 billion.

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