Material Litigation (Amended Announcement)

Amended Announcements
Please refer to the earlier announcement reference number: GA1-21042016-00076

ABB is a wholly owned subsidiary of AFFIN Holdings Berhad (“AHB”).

The Plaintiff claims against ABB vide the  above Writ of Summons and Statement of Claim dated 22 January 2016 for the following:-

1. RM56,885,317.82 together with interest at 5% per annum from 1999 till full settlement as alleged damages; 
2. SGD9,928,473.75 together with interest at 5% per annum from 2013 till full settlement as alleged losses;
3. RM776,331.00 being alleged losses of Plaintiffs’ shares in Berlian Ferries Pte. Ltd which was transferred out as a result of his bankruptcy in 2013 with interest at 5% per annum from 2013 till full settlement as alleged losses;
4. RM500,000 as cost in respect of legal  proceedings in Singapore.

ABB  had on 25 January 1996 given Suria Barisan (M) Sdn Bhd (“Suria”) a credit facility of RM21.6 million (“Facility”) against security of unquoted shares belongs to Naval Dockyard Sdn Bhd and guarantees by the Plaintiff and Puan Norashikin Binti Abdil Latiff (“Guarantor”).

Suria, the Plaintiff and Guarantor (“All”) defaulted in the Facility which led to ABB filing a debt recovery action against All of them in 1999. Judgement was obtained against All on 8 July 2004.                                      

The Plaintiff was made bankrupt on 17 January 2013. However in September 2015, the bankruptcy was set aside on the grounds that he was solvent due to a third party, Chenet Finance Ltd (“Chenet”) being ordered by a Singapore Court to pay damages to the Director General of Insolvency Malaysia (“DGI”) as receiver of Plaintiffs’ Estate. ABB has appealed and Case Management has been fixed on 24 June 2016.

The Plaintiff‘s claim (“Claim”) is premised on alleged wrongful acts by ABB as follows:-

1. failure to  sell 7.2 million shares in Naval Dockyard  Sdn Bhd  (“NDSB   Shares”) which was pledged by Suria to the Bank as security for the Facility on a timely basis. On this claim, Plaintiff claims damages under (a) above;
2. allowed the release of the Guarantor from her liability upon  payment   of   a   certain   sum   pursuant to her Guarantee  without  giving  the  same  opportunity  to  the Plaintiff;
3. ABB had corresponded with the opponent of Plaintiff in Singapore to prevent the Plaintiff from claiming his assets in Singapore. Plaintiff has alleged conspiracy between ABB and the opponent of the Plaintiff in Singapore. On this claim, Plaintiff claims losses under (b) above;
4. ABB  had  wrongfully made Plaintiff a bankrupt in 2013 which bankruptcy was set aside in 2015. On this claim,Plaintiff claims losses under (c) above;
5. The Plaintiff is also claiming the amount of  (d)  above being cost of proceedings incurred by him in Singapore.

ABB  has  a  good  defence (“Defence”)  on  the merits with regard to each of the alleged wrongful act as follows:-

1. the sale of NDSB Shares was subject to the approval from the relevant authorities as per the terms of the Facility Agreement and the price has to be based on the  offer from the approved prospective buyer; 
2. the release  of  the Guarantor  is  the prerogative  of  ABB pursuant to the terms of the Guarantee Agreement;
3. the Plaintiff’s bankruptcy  is based  on  a  judgement  of Court;      
4. ABB’s  legal  firm  had  corresponded  with  the  legal firm of the Plaintiff’s opponent in  Singapore  only  to  inform  the  status  of  the  Plaintiff proceedings in Malaysia and any alleged conspiracy is denied;
5. The claim for cost is unreasonable as ABB was not in any way involved in the Singapore proceedings.        

​The above Claim against ABB by the Plaintiff is as a result of a debt recovery action against the Plaintiff which was commenced in the ordinary course of business.

The Board of Directors of ABB are of the view that save for the orders, cost  and  other relief sought by the Plaintiffs,  which  will materialize only if the Court  rules in the Plaintiff’s favour, the Writ  and  Statement  of  Claim will  is not expected to result in  any immediate losses, material, financial and operational impact on  ABB  for the  current financial year ending 31 December 2016.   

The Plaintiff has filed an Application for Discovery of Documents which has been fixed for Case Management on 14 July 2016.     

This amended announcement is dated 30 May 2016.

Announcement Info