The lawsuit, which aims to reclaim the outstanding amount, has been fixed for case management on Sept 18 by the Shah Alam High Court.

The default was committed by the group’s indirect wholly-owned units, Mines Waterfront Business Park Sdn Bhd (MWBP) and Mines International Exhibition Centre Sdn Bhd.

It pertained to a charge created as security for an Islamic term financing facility and a bridging financing facility.

In a bourse filing yesterday, Country Heights attributed the default to differences in cash flow timing.

These differences were caused by delays in client payments, which in turn resulted in a temporary cash-flow constraint.

The group also said the default was linked to a winding-up petition issued against MWBP, which it said led to MBSB recalling the financing facilities the bank had granted to MWBP.

Country Heights said in the filing that it had received a writ of summons, together with a statement of claim and notice of case management, from the solicitors acting for MBSB on Aug 21.

According to the property developer, MBSB is claiming for total sales price outstanding and payable under Term Financing-i amounting to RM89.67 million as of Aug 1.

The bank is also seeking a compensation charge, called “ta’widh”, at a rate of 1% per annum. This charge is calculated from Aug 2 until the maturity of the term financing, or the date of judgment.

The other claims involve another ta’widh at the prevailing Islamic Interbank Money Market rate, and a late payment charge at a rate of 5% per annum.

All of these charges are applied to the base amount of RM77.26 million, and are calculated from the maturity date of the Term Financing-i until the full settlement or the court judgment date.

As at 10.39am, Country Heights’s share price was down by 5 sen or 1.56% at 32 sen, giving the group a market capitalisation of RM93.87 million.