Maxwell unit faces 14 cases in China, may cost group RM173m

This article first appeared in The Edge Financial Daily, on August 1, 2017.
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KUALA LUMPUR: Maxwell International Holdings Bhd said that its subsidiary Jinjiang Zhenxing Shoes & Plastics Co Ltd (JZSP) may be facing 14 litigation cases in China, which may cost the group 272.18 million yuan (RM173.18 million).

The cases were filed from Dec 29 last year to April 26, according to a Bursa Malaysia filing by Maxwell International yesterday. However, the group said its board is “unable to confirm” the litigations at this juncture.

Maxwell International said the board has proceeded to appoint an external law firm in Malaysia to confirm and clarify the accuracy of the litigation matters, which is expected to be done within two months.

Additionally, the law firm will also carry out a thorough review of the litigations, the liabilities and potential impacts on JZSP, and the proposed steps to be taken by JZSP, added Maxwell International.

Shares in Maxwell International have been trading at an all-time low since mid-2016. Yesterday, the counter closed one sen higher at three sen with 22.29 million shares traded, with a market capitalisation of RM13.96 million.