News

The Board of Directors of Knusford Berhad ("KB" or "the Company") wishes to announce that its wholly-owned subsidiary company, Knusford Marketing Sdn Bhd (“KMSB”) has commenced legal proceedings against Kinsteel Berhad (“Kinsteel”) and its subsidiary, Kin Kee Marketing Sdn Bhd (‘Kin Kee”) claiming for a sum of RM20.1 million together with interest and costs (“Claim”).

The Claim is made by KMSB against Kin Kee for failing to deliver steel bars in the agreed quantity (“Agreement”) which has been paid and Kinsteel has provided an irrevocable corporate guarantee to secure the performance of Kin Kee (“Guarantee”).  KMSB has served a writ of summons and statement of claim against Kinsteel and Kin Kee on 28 April 2016, claiming for the value of the outstanding goods that remains undelivered and the interest accrued thereon pursuant to the Agreement and the Guarantee respectively.

The Claim is not expected to have any material adverse financial or operational impact as the Agreement was carried out on a back-to-back basis with KMSB’s customer who has paid for the steel bars and agreed not to hold KMSB accountable nor liable for any losses suffered as a consequence of the steel bars not being delivered.

This announcement is dated 28 April 2016.