KUALA LUMPUR (June 21): Two major subsidiaries of Evergreen Fibreboard Bhd have been served with a winding-up petition by Soon Lian Engineering Construction (SLEC) due to an on-going dispute pertaining to claims for works or services allegedly provided by SLEC.

According to Evergreen Fibreboard, SLEC had supplied machinery installation and dismantling services to AllGreen Timber Products Sdn Bhd and Evergreen Fibreboard (JB) Sdn Bhd (EJB) at their request since 2016.

In a filing with Bursa Malaysia today, Evergreen Fibreboard said AllGreen Timber and EJB had on June 15 been served with a winding-up petition by SLEC. SLEC is seeking to claim RM47,614.14 from AllGreen Timber and RM1.19 million from EJB.

"EFB is disputing the amount being claimed by SLEC due to the fact that some of the claims were not supported with proper documentations as per AllGreen Timber’s and EJB’s policies and therefore EFB is of the view these claims are baseless and were made with the intention to defame the group’s reputation," said Evergreen Fibreboard.

"Hence, EFB will rigorously defend its position on this case," it added.

Evergreen Fibreboard also noted that the amount claimed by SLEC is immaterial relative to the value of the assets of the subsidiary companies and will not in any way jeopardise their operations. As at Dec 31, 2018, Evergreen Fibreboard's cost of investment in AllGreen Timber stood at RM130 million and EJB at RM50 million.

The hearing for the winding-up petition is fixed on Aug 13 and 14 respectively.

"Further announcement on the development of the matter will be made to Bursa in due course," said Evergreen Fibreboard.

Evergreen Fibreboard shares closed unchanged at 29.5 sen today, with 1.72 million shares done, bringing a market capitalisation of RM249.7 million.