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MATERIAL LITIGATION STEEL HAWK BERHAD ("STEEL HAWK" OR THE "COMPANY") - WRIT OF SUMMONS AND STATEMENT OF CLAIM FILED IN THE HIGH COURT OF MALAYA AT KUALA LUMPUR BY STEEL HAWK ENGINEERING SDN BHD, A WHOLLY OWNED SUBSIDIARY OF STEEL HAWK VS IBRAHIM & SONS ENGINEERING SDN BHD, ALWAYS AHEAD ENGINEERING SDN BHD, ZAFRIN BIN IBRAHIM, ZULKFLEE BIN IBRAHIM AND KHAEROMZE BIN AHMAD (COLLECTIVELY KNOWN AS "DEFENDANTS")
STEEL HAWK BERHAD
Type
Announcement
Subject
MATERIAL LITIGATION
Description
STEEL HAWK BERHAD ("STEEL HAWK" OR THE "COMPANY") - WRIT OF SUMMONS AND STATEMENT OF CLAIM FILED IN THE HIGH COURT OF MALAYA AT KUALA LUMPUR BY STEEL HAWK ENGINEERING SDN BHD, A WHOLLY OWNED SUBSIDIARY OF STEEL HAWK VS IBRAHIM & SONS ENGINEERING SDN BHD, ALWAYS AHEAD ENGINEERING SDN BHD, ZAFRIN BIN IBRAHIM, ZULKFLEE BIN IBRAHIM AND KHAEROMZE BIN AHMAD (COLLECTIVELY KNOWN AS "DEFENDANTS")
Unless otherwise defined, all abbreviations and definitions used herein shall have the same meaning as defined in the announcement dated 21 April 2026.
Further to the Company's announcement dated 21 April 2026 in relation to the Suit, the Board of Directors of Steel Hawk wishes to announce the following additional information:
1)
It was stated in the announcement that the Collaboration Agreement was entered into on 31 July 2025. However, based on the Company's announcement dated 29 August 2025, it was represented that the Collaboration Agreement was entered into on 5 August 2025. To clarify whether the Collaboration Agreement mentioned in the Announcement is similar to the agreement stated in the announcement made on 29 August 2025. If yes, to clarify the difference in the date of entering into the agreement.
The Collaboration Agreement referred to in the announcement dated 21 April 2026 is the same agreement as that disclosed in the Company's announcement dated 29 August 2025. For clarity, although the Collaboration Agreement was dated 31 July 2025, it was fully executed by all parties on 5 August 2025.
2)
In respect of the total sum of RM11,631,459.97 paid to IBSE and/or Always Ahead Engineering Sdn Bhd, to state the purpose of the payment made.
The total sum of RM11,631,459.97 paid by SHESB to IBSE and/or Always Ahead Engineering Sdn Bhd represents working capital provided pursuant to the Collaboration Agreement.
Under the terms of the Collaboration Agreement, SHESB had agreed to provide up to 60% of the working capital requirements for each purchase order, as well as advance working capital, to facilitate the performance and completion of the works under the Collaboration Agreement.
The said payments were made in accordance with SHESB's funding obligations under the Collaboration Agreement.
3)
To clarify the work done by SHESB to-date under the Collaboration Agreement and any outstanding payment yet to be received for completed works.
SHESB has performed its obligations pursuant to the Collaboration Agreement, including the provision of working capital, as well as the procurement of machinery and related resources to facilitate the execution of the works.
Following the discovery of matters which are now the subject of the Suit, the machinery procured by SHESB has been retrieved and is currently retained by the Company.
To-date, SHESB has only received payments of approximately RM121,489.20. Out of the total sum of RM11,631,459.97 provided by SHESB as working capital, the balance amount remains outstanding and is subject to recovery through the legal proceedings.
Pursuant to the terms of the Collaboration Agreement, all working capital provided by SHESB are to be repaid from payments received from TNB. The exact amount recoverable will be determined in the course of the Suit.
4)
In respect of the payment sum amounting to RM2,763,067.21, to clarify whether this amount forms part of the total amount mentioned above and to clarify the purpose for such payment made by the Defendants.
The sum of RM2,763,067.21 does not form part of the total sum of RM11,631,459.97 referred to above.
The said sum represents payments received from TNB in relation to the projects under the Collaboration Agreement.
Pursuant to the Collaboration Agreement, all such payments received from TNB were required to be treated as trust monies and deposited into designated trust and/or escrow accounts for the benefit of SHESB. As set out in the Suit, the said sum was allegedly paid into an unauthorised account.
5)
To update the current status of the engineering projects relating to TNB under the Collaboration Agreement i.e., ongoing or terminated.
The engineering projects referred to were undertaken pursuant to the Collaboration Agreement.
Following the discovery of matters which are now the subject of the Suit, SHESB has ceased all work in relation to the projects under the Collaboration Agreement with effect from 17 April 2026.
The status of the projects undertaken by IBSE is not within the Company's control, as such the Company is unable to ascertain whether the said projects are ongoing.