MATERIAL LITIGATION IRE-TEX CORPORATION BERHAD ("IRETEX" or "the Company") Georgetown Sessions Court Suit No. PA-A52NCC-60-04/2016 Le Champ (South East Asia) Pte Ltd (Le Champ or the Plaintiff) vs Zoomic Automation (M) Sdn Bhd, a wholly-owned subsidiary of IRETEX (ZAMSB or the Defendant)

IRE-TEX CORPORATION BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
IRE-TEX CORPORATION BERHAD ("IRETEX" or "the Company")  Georgetown Sessions Court Suit No. PA-A52NCC-60-04/2016 Le Champ (South East Asia) Pte Ltd (Le Champ or the Plaintiff) vs Zoomic Automation (M) Sdn Bhd, a wholly-owned subsidiary of IRETEX (ZAMSB or the Defendant)

IRE-TEX CORPORATION BERHAD ("IRETEX" or "the Company")

Georgetown Sessions Court Suit No. PA-A52NCC-60-04/2016 Le Champ (South East Asia) Pte Ltd (“Le Champ” or the “Plaintiff”) vs Zoomic Automation (M) Sdn Bhd, a wholly-owned subsidiary of IRETEX (“ZAMSB” or the “Defendant”)

 

The Board of Directors of IRETEX (“Board”) wishes to announce that ZAMSB had on 1 April 2019 received a letter dated 29 March 2019 from Le Champ through a firm of lawyers acting on their behalf served a sealed copy of the Court Order dated 13 November 2017 (“Order”) in relation to the claims filed by the Plaintiff. 

 

The Defendant is given 7 days from 29th March 2019 to settle it debts, failing which the Plaintiff shall proceed with enforcement recourse against ZAMSB for the recovery of outstanding amount together with all interest and costs without further reference to ZAMSB.

 

The lawyer representing ZOOMIC AUTOMATION (M) SDN BHD has written to the plaintiff’s lawyer asking for extension of time to seek an amicable settlement.

 

Particulars of claims and circumstances leading to the Order

 

The Plaintiff had through a firm of lawyers acting on their behalf, issued a Notice of Demand dated 5 February 2016 to ZAMSB demanding the sum of USD51,808.65 (Approximate of RM207,234.00) together with interest at the rate of 5% per annum, due and owing to the Plaintiff for the supply of electronic parts and components or related items and engineering charges. As a result of ZAMSB’s failure to comply with the Notice of Demand, the Plaintiff has institute legal proceedings for the recovery of the outstanding sum.

 

ZAMSB has (via the previous ZAMSB’s management team) arranged several negotiations with the Plaintiff pertaining to the settlement arrangement but was unable to obtain an outcome.

 

As such, the Plaintiff seeks against ZAMSB for the following:-

 

(a)        The outstanding sum of USD51,808.65;

(b)        Late payment interest at the rate of 24% per annum on the outstanding sum of each invoice calculated 30 days from the maturity date until the date of full settlement; and

(c)        Cost of the Order of RM3,000.00.

 

Financial and operational impact

ZAMSB, is not a major subsidiary of IRETEX. The total cost of investment by IRETEX in ZAMSB is RM7.3 million which has been fully impaired as at 31 December 2017.

 

Expected losses to the Group, if any

IRETEX and its subsidiaries (“Group") is exposed to the claims, interests and expenses as stated above.

 

Steps taken and proposed to be taken by the Company

ZAMSB has appointed lawyers to act on its behalf.

ZAMSB would be contacting the Plaintiff to discuss the above matter.

 

 

This announcement is dated 10 April 2019.






Announcement Info

Company Name IRE-TEX CORPORATION BERHAD
Stock Name IRETEX
Date Announced 10 Apr 2019
Category General Announcement for PLC
Reference Number GA1-10042019-00116