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METROD

1.520

(%)

MATERIAL LITIGATION WINDING-UP PETITION BY SQA BUILDERS SDN. BHD.

METROD HOLDINGS BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
WINDING-UP PETITION BY SQA BUILDERS SDN. BHD.

Metrod Holdings Bhd ("Company") wishes to announce that its wholly-owned subsidiary, Metrod (Malaysia) Sdn. Bhd. ("MMSB") had been served with a winding-up petition ("Petition") by SQA Builders Sdn Bhd ("Petitioner") on 26 July 2019. The details of the Petition are set out below:

 

(a)        Date of presentation of the Petition

 

The Petition was presented by the Petitioner to the High Court of Malaya on 23 July 2019.

 

(b)       Particulars of the claim / details of circumstances leading to the filing of the Petition

 

The Petitioner is claiming for RM 1,179,101.30 being outstanding amount of RM1,161,256.13 and the accrued interest of RM 17,845.17, as at 10 April 2019. Due to the ongoing negotiations between the parties regarding the amount claimed by the Petitioner and the amount claim by MMSB for the substandard flooring works and the liquidated and ascertained damages (LAD) for the delay in execution of the Contract affecting the overall delay in completion of the Project and start of production, MMSB has withheld the payment to the Petitioner.

 

(c)        Financial and operational impact of the Petition on the Company / Expected losses

 

MMSB is a major subsidiary of the Company. The Company and its subsidiaries ("Group") does not expect any financial and operational impact arising from the filing of the Petition. Save for legal fees and disbursements involved to challenge and oppose the Petition, the Group is not expected to incur losses arising from the winding up proceedings.

 

(d)       Steps taken in respect of the Petition

 

MMSB is taking the necessary action to dismiss and strike off the Petition for winding up on the following grounds:

 

1. MMSB has a set-off or a counterclaim under the Contract which exceeds the sum of RM1,179,101.30 allegedly due by MMSB to the petitioner;

 

2. the matters in the Petition fall within the arbitration clause / agreement in the Contract and as such, should be referred to arbitration;

 

3. MMSB is financially solvent and the Petition is clearly an abuse of process of the Court to intimidate MMSB into making payment of a disputed debt; and

 

4. the Winding Up Petition is frivolous, vexatious and scandalous and filed with mala fide intentions to injure the business reputation of the Group.

 

This announcement is dated 26 August 2019.






Announcement Info

Company Name METROD HOLDINGS BERHAD
Stock Name METROD
Date Announced 26 Aug 2019
Category General Announcement for PLC
Reference Number GA1-26082019-00059