KUALA LUMPUR: Shares of Limahsoon Bhd fell in early trade on Thursday, Dec 31 after its major subsidiary defaulted on RM91.35 million in payments for three tranches of loans.

At 9.29am, it was down three sen to 6.5 sen with 190,000 shares done.

The company said on Wednesday Bank Pertanian Malaysia Bhd (Agrobank) claimed for payments of  RM91.35 million for three loans.

It said payment of RM7.20 million was due for a term loan facility of RM40 million; payment of RM15.06 million for a loan of RM15million and payment of RM69.15 million for the Al-Bai Bithaman Ajil (BBA) of RM45 million.

Limahsoon said its major subsidiary Kilang Papan Lim Ah Soon Sdn Bhd has been affected by weak market conditions for its core business, the production laminated boards in the first half of the financial year resulting in constraint in working capital.

The company has been engaged in regular negotiations with Agrobank prior to the notices of demand, for additional financing facilities and to reschedule the repayment of the facilities.

"The company will continue to liaise with Agrobank in negotiations to arrive at a mutually acceptable arrangement with regards to the repayment and/or rescheduling of the abovementioned facilities," it added.