In 1989, Petronas had to make another MDollars 982m cash injection after loan losses on the Malaysian property market. In early 1991, Petronas sold Bank Bumiputra to the Finance Ministry for an undisclosed sum.
Speaking to reporters this week after Bank Bumiputra's shareholders approved a rescue plan, Tan Sri Basir said heavy lending to the property sector rocked the bank when property prices in Malaysia plummeted in 1984-85.
However, Petronas last week confirmed the sale, citing its desire to concentrate on its core business. Petronas twice in the 1980s bailed out Bank Bumiputra after loan losses wiped out its shareholders' capital.
Among other things, the suit alleges that Bank Bumiputra bought California and Florida properties from Carrian Group, a now-defunct Hong Kong company, for a fraction of market value.
In the mid-1980s, it was involved in a loans scandal centred on the exposure of its Bumiputra Merchant Finance subsidiary in the Hong Kong property market. Later, the bank faced bankruptcy over bad loans, this time in the Malaysian market.
Bank Bumiputra said it "is confident that the action will have no material impact on its financial position." Revco said the reorganization plan will become effective a month to six weeks after being confirmed by the court.