News

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:

1. Kinsteel and Kin Kee are to pay a total sum of RM2,000,000 in four (4) instalments vide four (4) post-dated cheques of RM 500,000 each.
2. Kinsteel and Kin Kee are to deliver a total of 3,050 metric tonnes of steel bars over a period of eleven (11) months to KMKSB, commencing from 5 October 2016 to 5 August 2017.
3. The balance sum owing to the KMKSB which is the difference between RM20,074,567.90 less the value of steel bars delivered to the KMKSB at the end of the 11 months delivery as at August 2017 and any monies received under item (a) above (“the Balance Sum”) shall be settled through the following manner:-

1. That the Balance Sum be paid in a lump sum by 5 September 2017; or
2. That the Balance Sum be paid in three (3) equal monthly instalments commencing from September 2017 to November 2017 at the interest rate calculated at 8% per annum on the Balance Sum.

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.