KUALA LUMPUR (March 15): HLT Global Bhd’s wholly-owned subsidiary HL Advance Technologies (M) Sdn Bhd (HLA) is suing WRP Asia Pacific Sdn Bhd, WRP Specialty Products Sdn Bhd (the first and second defendants) and three other defendants over RM16.43 million owed for equipment, goods and services provided by HLA.

According to a filing with Bursa Malaysia, the three other defendants named in the writ summons and statement of claim filed at the High Court here are Michael Sng Beng Hock (third defendant), Loong Mei Yin (fourth defendant) and Abinash Majhi (fifth defendant).

It is also seeking interest of RM9.19 million, accrued up to March 14, 2022, on the judgment sum, and continuing at a rate of RM197,220.26 per month until full and final settlement of the RM16.43 million judgment sum.

HLA contends that it was requested by the first two defendants, through their director, to enter into a settlement agreement whereby Advanced Healthcare Products Sdn Bhd (AHP) will effect payment of the outstanding sums on behalf of the defendants.

However, AHP was subsequently wound up by the Ipoh High Court, leaving the first two defendants liable to HLA for the outstanding sums.

HLA also sought for a declaration that the third, fourth and fifth defendants are guilty of fraudulent trading under Section 540 of the Companies Act 2016, and for them to be personally liable for the outstanding sums, given among others, their involvement in the business of the first and second defendants.

HLA also contends that the third and fourth defendants are guilty of fraudulent trading, given their involvement in the business of the first and second defendants, Tael Management Co (Malaysia) Sdn Bhd and Tael Group, which HLA said are clearly intended to relegate the rights and interests of the creditors of the second defendant.

“Apart from the potential costs which may be awarded against HLA and the corresponding legal costs, the writ summons and statement of claim are not expected to have any other material financial impact on the group for the financial year ending Dec 31, 2022.

“The writ summons and statement of claim are not expected to have any material business and operational impacts on the group,” said HLT.