MATERIAL LITIGATION BETWEEN KNUSFORD BERHAD WHOLLY OWNED SUBSIDIARY, KNUSFORD MARKETING SDN BHD (PLAINTIFF) vs KIN KEE MARKETING SDN BHD (1ST DEFENDANT) AND KINSTEEL BERHAD (2ND DEFENDANT) KUANTAN HIGH COURT SUIT NO. 22NCVC-21-04/2016
We refer to our announcement dated 28 April 2016.
The Board of Directors of the Company wish to announce that its wholly-owned subsidiary company, Knusford Marketing Sdn Bhd (“KMKSB”) had served a notice under Section 218(1)(e) & 218(2)(a) of the Companies Act 1965 (collectively “Notices”) on Kinsteel Berhad (“Kinsteel”) and Kin Kee Marketing Sdn Bhd (“Kin Kee”) on 25 November 2016 for failing to deliver steel bars.
The obligation to deliver steel bars forms part of the consent judgment (“Consent Judgment”) entered into between KMKSB, Kinsteel and Kin Kee on 5 September 2016 with the principal terms as follows:
The Board is of the opinion that the claim above will not have any material adverse financial or operational impact given that the Agreement for the delivery of steel bars was carried out on a back-to-back basis with KMKSB’s customer, who had paid for the steel bars in full and had agreed that it shall not hold KMKSB accountable nor liable for any losses suffered by it as a consequence of Kinsteel or Kin Kee’s breach.
This announcement is dated 25 November 2016.
|Company Name||KNUSFORD BERHAD|
|Date Announced||25 Nov 2016|
|Category||General Announcement for PLC|