On 23 January 2007, MARC had placed Intelbest Corporation Sdn Bhd’s (“Intelbest”) RM110.0 million BaIDS and RM50.0 million MUNIF on MARCWatch Negative.

Based on the trustee’s letters dated 29 January 2007 and 5 February 2007, the total amount to be maintained in the Redemption Account (“RA”) by 28 January 2007 is RM47.9 million for the redemption of the Series 1 BaIDS (RM20.0 million), the remaining MUNIF (RM24.0 million) and the Secondary BaIDS (RM3.9 million). However, as at 28 January 2007, the amount in the RA stood at only RM4.4 million. As required under the issue structure, there should be sufficient amount in the RA one month prior to the redemption date. Therefore, this shortfall could trigger a technical event of default. Nevertheless, MARC was made to understand that another bondholders’ meeting will be held on 16 February 2007 to discuss and resolve the issue.

The annual rating review on the issuer is expected to be conducted after the bondholders’ meeting. This would enable MARC to assess the impact of the issuer’s proposal. Any ratings implications arising therefrom will be advised in due course.