MATERIAL LITIGATION CLAIM MADE BY AIRDEX INTERNATIONAL INC. AGAINST SUZHOU STYROTEX PLASTIC CO.LTD, A WHOLLY OWNED SUBSIDIARY COMPANY OF IRE-TEX CORPORATION BERHAD

IRE-TEX CORPORATION BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description CLAIM MADE BY AIRDEX INTERNATIONAL INC. AGAINST SUZHOU STYROTEX PLASTIC CO.LTD, A WHOLLY OWNED SUBSIDIARY COMPANY OF IRE-TEX CORPORATION BERHAD

Further to the Company’s announcement on 13 February 2015, Ire-Tex Corporation Berhad wishes to provide the following additional information relating to the material litigation:

1. The relationship between SSPC and Airdex (including nature of business relationship).

There is no relationship between SSPC and Airdex, except that both companies were engaged in the same business of production and selling of a Lightweight Polyfoam Pallet. Thus, Airdex was a competitor to SSPC.

2. Whether SSPC is a major subsidiary of ITCB.

 SSPC is not a major subsidiary of ITCB.

 

3. Financial and operational impact on the Group arising from the suit.

In the event the Company lose the civil suit, the financial impact to the Group are as follows:-

i. compensation damages claimed by plaintiff up to RMB 3 million;

ii. mold in respect of Airfreight Pallet to be destroyed. However, net book value of the said asset had been fully depreciated and thus does not have any financial impact; and

iii. There is no impact on the operation because SSAP has stopped the production and selling of Lightweight Polyfoam pallet.

 

 



Announcement Info

Company Name IRE-TEX CORPORATION BERHAD  
Stock Name IRETEX    
Date Announced 17 Feb 2015  
Category General Announcement
Reference No CC-150217-61685