Khee San sues another bank over repayment default, seeks RM114m in damages

TheEdge Wed, Aug 26, 2020 12:12pm - 7 months ago

KUALA LUMPUR (Aug 26): Khee San Bhd has filed a writ of summons against United Overseas Bank (Malaysia) Bhd (UOB) over a payment default allegedly owed by the group’s wholly-owned unit Khee San Food Industries Sdn Bhd (KSFI).

According to previous filings, the candy maker said it had a default in payment to UOB amounting to RM7.9 million, between April and August of 2019, due to cashflow restraints.

Khee San filed the writ of summons and statement of claim on UOB yesterday, seeking for the sum owed to the bank be set off in totality, or that the “fictitious” portion be omitted from repayment as the court directs.

The company is also claiming for a sum of RM114 million or equivalent to RM1 to every shareholder of Khee San be paid by UOB as damages.

Furthermore, it is asking for additional damages of RM140 million for damage caused to Khee San in terms of operations and revenue loss including reputational damage to the group and its brands.

“The company will make the necessary announcements to Bursa Malaysia as and when there are further developments in relation thereof and/or upon receipt of any further directions by the High Court of Kuala Lumpur,” it said.

UOB is one of several banks that Khee San has allegedly defaulted in payment to. According to a July 6 filing, Khee San said it has a total outstanding default amount of RM73.5 million to several banks as at March 31, 2020.

However, Khee San has since filed a writ of summons against a few of these banks, such as Maybank Islamic Bhd and Standard Chartered Bank Malaysia Bhd, claiming that a portion of the amount owed to the respective banks was in fact fictitious.

As at 11.21am, Khee San was unchanged at 29 sen, valuing the company at RM33.18 million.

Edited by Lam Jian Wyn

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