General Announcement
Reference No TC-071203-62105

Company Name	:	TALAM CORPORATION BERHAD
Stock Name	:	TALAM
Date Announced	:	03/12/2007


Type	:	Announcement
Subject	:	TALAM CORPORATION BERHAD (“Talam” or “the Company”) MONTHLY ANNOUNCEMENT ON STATUS OF DEFAULT IN PAYMENT PURSUANT TO PRACTICE NOTE 1/2001 OF BURSA MALAYSIA SECURITIES BERHAD LISTING REQUIREMENTS

Contents :

Further to our announcement made on 1 November 2007, Talam wishes to inform that the status of the various credit facilities in default by the Company and its subsidiaries to the financial institutions as at 31 October 2007 are detailed in Table A attached which has been categorized into 6 groups.

There is no material development on the status of the various credit facilities in default by the Company and its subsidiaries to the financial institutions save and except for the following approved 10% debt waiver by the various financial institutions subject always to the Securities Commission (“SC”) approving the Talam Revised Regularisation Plan :-

	Approval Obtained on	Lenders/ Subsidiary companies / Facility
1.	23 October 2007	Abrar Discounts Berhad and two (2) other Noteholders : Europlus Corporation Sdn Bhd Murabahah Underwritten Notes Issuance Facility of RM190.0 Million
2.	23 October 2007	Abrar Discounts Berhad : Maxisegar Sdn Bhd Al-Bai Bithaman Ajil Islamics Debts Securities of RM130.0 Million
3.	5 November 2007	Eon Bank Berhad : Abra Development Sdn Bhd – Islamic Loan Facility of RM13.0 Million
4.	5 November 2007	Eon Bank Berhad : Talam Corporation Berhad – Revolving Credit of RM3.0 Million and Overdraft Facility of RM3.0 Million
5.	21 November 2007	RHB Investment Bank Berhad : Europlus Berhad – Term Loan Facility of RM3.0 Million
6.	21 November 2007	RHB Investment Bank Berhad : Talam Corporation Berhad – Term Loan Facility of RM36.4 Million
7.	21 November 2007	RHB Investment Bank Berhad : Talam Industries Sdn Bhd – Term Loan Facility of RM30.4 Million

The Company had proposed, inter-alia, the following to address the concerns of the SC in its appeal against the SC’s rejection of the Proposed Regularisation Plan, which was submitted on 25 October 2007:-

a) revision to Talam’s financial forecast and projections to include certain events that occurred subsequent to the application made to the SC in April 2007, such as an additional commercial, office cum residential development project in China to be jointly developed with IJM Properties Sdn Bhd and project management fees in respect of the Canal City Project as well as the lower interest expense to be charged pursuant to Financial Reporting Standard 132 as a result of the lower number of debt securities to be issued pursuant to the Proposed Revised Regularisation Plan. All these are expected to contribute positively to the future financial position of Talam and will enable Talam to immediately turnaround post restructuring;

b) Talam has also propose an additional 10% capital reduction resulting in a total capital reduction of 40% and a 10% debt waiver on the amount owing to the creditors who will be receiving debt securities pursuant to the Proposed Regularisation Plan, which will substantially reduce the Talam Group’s accumulated losses;

c) Kumpulan Europlus Berhad has undertaken to retain its controlling interest in Talam; and

d) IJM Construction Sdn Bhd (“IJMC”) has been appointed as the principal contractor for the remaining stalled projects of the Talam group of companies, namely Abra Development Sdn Bhd, Lestari Puchong Sdn Bhd, Expand Factor Sdn Bhd, Galian Juta Sdn Bhd and Europlus Construction Sdn Bhd per the Letter of Award dated 23 November 2007.

The Proposed Revised Regularisation Plan is currently pending the decision of the SC.

This announcement is dated 3 December 2007.

Table A

A) Europlus Corporation Sdn Bhd has been notified that the Noteholders have approved and passed the resolution in writing on the proposed restructuring scheme on 25 September 2006.

Pursuant to the SC’s rejection, approval has been obtained on 23 October 2007 for the proposed 10% debt waiver and submitted to the relevant authorities for approval:-

Subsidiary companies	Lender/ Securities Agent	Facility	Loan Outstanding as at 31/10/2007 (RM)	10% Debt Waiver (RM)	Date of Default of Loan	Amount Outstanding as Date of Default (RM)
Europlus Corporation Sdn Bhd	Abrar Discounts Berhad	Murabahah Underwritten Notes Issuance Facility	190,000,000	19,000,000	31/12/04	196,000,000

B) The following loans with the companies are part of the overall financing restructuring approved by the respective financial institutions.

Pursuant to the SC’s rejection, 10% debt waiver have been proposed to the respective financial institutions which are pending approval:-

Subsidiary companies	Lender/ Securities Agent	Facility	Loan Outstanding as at 31/10/2007 (RM)	Date of Default of Loan	Amount Outstanding as Date of Default (RM)
Abra Development Sdn Bhd	EON Bank Berhad	Islamic Loan Facility	13,451,282*	30/06/05	12,799,792.89
Talam Corporation Berhad	EON Bank Berhad	Revolving Credit Facility Overdraft Facility	3,242,549* 3,220,148*	15/08/05 31/08/05	3,109,150.68 3,021,000
Europlus Berhad	RHB Investment Bank Berhad	Term Loan Facility	3,297,382**	30/09/05	3,019,043.84
Talam Corporation Berhad	RHB Investment Bank Berhad	Revolving Credit Facility I Revolving Credit Facility II Revolving Credit Facility III Revolving Credit Facility IV	11,221,142 16,816,990 4,210,867 5,657,099	30/09/05 30/09/05 30/09/05 30/09/05	10,068,369.86 15,102,554.79 6,443,756.71 5,034,184.93
Talam Industries Sdn Bhd	RHB Investment Bank Berhad	Term Loan Facility	13,220,954**	31/12/03	11,134,000

* Approval Obtained on 5 November 2007
** Approval Obtained on 21 November 2007

C) The following companies are in the midst of finalizing the sales and purchase agreement for the disposal of the asset to repay the banking facilities:-

Subsidiary companies	Lender/ Securities Agent	Facility	Loan Outstanding as at 31/10/2007 (RM)	Date of Default of Loan	Amount Outstanding as Date of Default (RM)
Europlus Berhad	Affin Bank Berhad	Revolving Credit Facility Overdraft Facility	10,024,986 2,045,316	31/10/05 31/10/05	8,850,000 1,900,000
Juara Tiasa Sdn Bhd	Affin-ACF Finance Berhad	Term Loan Facility	4,669,665	30/09/05	3,030,137.16
Talam Corporation Berhad	Affin Bank Berhad	Revolving Credit Facility Overdraft Facility	3,687,102 6,075,369	30/06/05 30/06/05	3,000,000 5,000,000
Maxisegar Realty Sdn Bhd	TA First Credit Sdn Bhd	Term Loan Facility Term Loan Facility (Tranche 1) Term Loan Facility (Tranche 2)	20,594,939 55,270,875 58,490,448	31/08/04 31/01/05 31/05/05	20,794,938.50 40,306,603.77 40,400,000

D) The following companies are finalizing the joint venture agreement with the reputable developers where the joint venture company will repay the loan:-

i) Joint Venture Agreement have been finalized on 5 March 2007

Subsidiary companies	Lender/ Securities Agent	Facility	Loan Outstanding as at 31/10/2007 (RM)	Date of Default of Loan	Amount Outstanding as Date of Default (RM)
Untung Utama Sdn Bhd	Insas Credit & Leasing Sdn Bhd	Term Loan Facility Term Loan Facility	5,306,956 14,701,694	28/02/06 28/02/06	5,048,835.62 13,035,917.80
Zhinmun Sdn Bhd	Insas Credit & Leasing Sdn Bhd	Term Loan Facility Term Loan Facility	5,284,020 21,874,628	28/02/06 28/02/06	5,028,875.85 19,573,534.25

ii) Pending finalizing of joint venture agreement

Subsidiary companies	Lender/ Securities Agent	Facility	Loan Outstanding as at 31/10/2007 (RM)	Date of Default of Loan	Amount Outstanding as Date of Default (RM)
Ukay Land Sdn Bhd	Insas Credit & Leasing Sdn Bhd	Term Loan Facility	15,380,907	28/02/06	10,101,917.71

E) The following company is currently under Section 176 of the Companies Act, 1965. Maxisegar Sdn Bhd has been notified that the Noteholders have approved on 9 January 2007.

Pursuant to the SC’s rejection, approval has been obtained on 23 October 2007 for the proposed 10% debt waiver and submitted to the relevant authorities for approval:-

Subsidiary companies	Lender/ Securities Agent	Facility	Loan Outstanding as at 31/10/2007 (RM)	10% Debt Waiver (RM)	Date of Default of Loan	Amount Outstanding as Date of Default (RM)
Maxisegar Sdn Bhd	Abrar Discounts Berhad	Al-Bai Bithaman Ajil Islamic Debts Securities	130,000,000	13,000,000	28/02/06	130,000,000

F) The following companies are in the midst of negotiating with financial institutions to reschedule the banking facilities:-

i) Approval obtained on 23 April 2007

Subsidiary companies	Lender/ Securities Agent	Facility	Loan Outstanding as at 31/10/2007 (RM)	Date of Default of Loan	Amount Outstanding as Date of Default (RM)
Europlus Berhad	AmInvestment Bank Berhad	Bridging Loan Facility	6,476,685	31/01/05	5,779,539.02

ii) Pending approval from financial institution

Subsidiary companies	Lender/ Securities Agent	Facility	Loan Outstanding as at 31/10/2007 (RM)	Date of Default of Loan	Amount Outstanding as Date of Default (RM)
Talam Corporation Berhad	Pengurusan Danaharta Nasional	Overdraft Facility	2,736,345	31/10/04	2,166,767.97