We refer to the letter from Bursa Securities dated 10 June 2020 with reference number GAI-05032020-00072 and the Company’s announcement dated 12 June 2020.

The Liquidator wish to inform the shareholders that we have received the Confirmation (as defined in the Company’s announcement dated 12 June 2020) from Abu Talib Shahrom (the legal firm representing the directors of the Company in appealing against the Company’s Winding-Up Order dated 15 October 2019) and submitted it to Bursa Securities on 22 June 2020.  

The Liquidator wish to further advise the shareholders that the Winding-Up Order dated 15 October 2019 (“Winding-Up Order”) is being challenged and the appeal against Winding-Up Order is on-going. Based on the Confirmation, the former directors of Sumatec had instructed Abu Talib Shahrom to file an appeal against the Winding-Up Order. The Notice of Appeal has been filed at the Court of Appeal on 13 November 2019.

The main ground of appeal is the existence of a valid stay order issued by the Court of Appeal dated 21 February 2019 which has stayed all proceedings against Sumatec until the final disposal of Civil Suit No. WA-22NCC-65-02/2019 brought about by Sumatec against the Malaysian Trustees Berhad, Kerisma Berhad, Capone Berhad, Prima Uno Berhad, Chan Yok Peng, Hoe Leong Corporation Limited and Setinggi Holdings Limited (“Defendants”) (“Fraud Suit”).

The Fraud Suit was in respect of the Company’s allegation of fraud on the Settlement Agreement 2015 (as defined in the Company’s announcement dated 21 November 2018) against the Defendants. The Company is seeking for, inter alia, a declaration that the Settlement Agreement 2015 is null and void and that the Court of Appeal decision on 16 April 2018 to allow summary judgment to be entered against the Company by Malaysian Trustees Berhad, Kerisma Berhad, Capone Berhad and Prima Uno Berhad a nullity and to be set aside. To date, the Fraud Suit has not yet been fully disposed of.

There have been a series of case management for the appeal against the Winding-Up Order. The Court of Appeal has fixed 25 August 2020 for the hearing of the same.

However, the Liquidator is not a party to the appeal against the Winding-Up Order. As such, the Company shall make necessary announcements if such information is made available to the Liquidator.

As for the Fraud Suit, the Company currently has insufficient fund to proceed with the Fraud Suit. In addition, pursuant to a hearing on 9 June 2020 in relation to an application by Hoe Leong Corporation Limited and the order granted by the High Court of the same date, the Company was required to pay for security for cost in the amount of RM70,000 to the Court by 1 August 2020. Should the Company fail to pay the security for cost by the stipulated deadline, the Court will proceed to strike out the Fraud Suit against Hoe Leong Corporation Limited.

Pursuant to the foregoing, the Liquidator has written to certain shareholders and creditors of the Company for funding required to proceed with the Fraud Suit. The Liquidator has received no reply as to date.

The Liquidator wishes to further inform that should the Company fails to raise the funds for the Fraud Suit, the Company would have no other choice but to discontinue the Fraud Suit. As such, the Liquidator will make necessary announcements if there is material development.

This announcement is dated 25 June 2020.