Brahim's, MAS catering agreement talks extended

PETALING JAYA: Brahim's Holdings Bhd's 70%-owned subsidiary Brahim's Airline Catering Sdn Bhd (BAC) has entered into an extension agreement (EA) with Malaysian Airline System Bhd (MAS) to facilitate negotiations for a new catering agreement (NCA) to be executed between the parties.
The parties have agreed to extend the NCA cut off date from March 31, 2015 to April 30.
"The parties agreed in good faith to use all reasonable best efforts to complete the negotiations for the NCA on or before the extended date," Brahim's said in a filing with Bursa Malaysia yesterday.
The parties had earlier entered into a settlement agreement dated Feb 26, 2015 (SA) to provide for the settlement of certain disputes and the negotiations of a new agreement to replace the existing catering agreement.
"The EA is to give more time for the parties to negotiate and conclude the NCA with a common goal to expedite the signing."
The EA is not expected to immediately have material effects on the earnings per share, net assets per share, gearing, share capital and substantial shareholders' shareholding of Brahim's for the financial year ending Dec 31, 2015.
"The board of directors of Brahim's, having considered the rationale and terms of the EA is of the opinion that the execution of the EA is in the best interest of the company," it said.