A bankruptcy notice has been issued against the Kulim-Bandar Baru MP Abdul Aziz Sheikh Fadzir and has been published in major dailies yesterday, prompting speculation that there may be an upcoming by-election in Kedah.

However, Abdul Aziz said he will settle the debts soon.

“Yes the notice is issued against me. This is about a loan taken by a company run by my family, but I haven’t been a part of the company since 2007.

“But never mind, it is still a family member’s company and is related to me. I will settle it soon. Discussions with the bank may start in a while,” the online news portal mStar Online quoted him as saying today.

The Kuala Lumpur High Court notice is dated June 6, and was issued by a lawyer acting on behalf of the creditor, Alliance Investment Bank Berhad.

The notice gives Abdul Aziz 14 days to respond.

If he fails to set aside the notice, such as settling the debt or by negotiating a settlement agreement, it could pave way to further court proceedings that may lead to him being declared a bankrupt.

For now, a check with the Department of Insolvency’s records reveals that he is not bankrupt.

A bankrupt cannot hold office as a member of parliament until he is discharged, according to the federal constitution.

Abdul Aziz also told mStar that he was unaware of the arrears until last night, when SMSes started pouring in to ask about the bankruptcy notice. He only managed to check the issue with the bank this morning.

He has declined to disclose the sum owed to the bank.