Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 22): Sumatec Resources Bhd said today that it has obtained a stay of execution from the Court of Appeal on a winding up petition filed against the company by its bondholders, pending a disposal of a civil lawsuit it has filed against them.

The petition was filed last August after the bondholders demanded a repayment of RM83.31 million from three collaterialised loans they had extended to Sumatec, following the Court of Appeal's decision in April last year to allow their application for a summary judgment after they sued Sumatec to claim the money.

This was after the appellate court set aside an earlier High Court's decision to dismiss the bondholders' application for the summary judgment, on grounds that the case was not a plain and obvious one and that Sumatec's defence merited a trial. The appellate court, however, held that there were no triable issues and set aside Sumatec's defence and counter-claim against the bondholders.

The bondholders, namely Kerisma Bhd, Capone Bhd and Prima Uno Bhd, first called up the debt in 2017 via Malaysian Trustees Bhd, after terminating a settlement agreement (SA) on the facilities. At the time, the bondholders had claimed for RM72.33 million (principal plus interest). 

However, Sumatec said it was advised then by its solicitors that it was not obliged to pay the sum based on a provision under the SA, inked in 2015. It said the bondholders should instead pursue any recourse or recovery from Hoe Leong Corp Ltd, Setinggi Holdings Ltd and/or Hoe Leong's nominees for breaching their obligations under the SA.

The bondholders then sued Sumatec for the money and sought for the summary judgment. In response, Sumatec filed its defence and counter-claim against the bondholders, Hoe Leong and Setinggi. The High Court subsequently dismissed the bondholders' application, after which the bondholders appealed and obtained the favourable ruling in April.

In a stock exchange filing today, Sumatec said it has "successfully obtained from the Court of Appeal, an order for stay of execution against the company dated April 16, 2018, yesterday.”

With the stay of execution, it said all proceedings relating to the winding-up petition against the Company at the Kuala Lumpur High Court shall be stayed until the disposal of the civil suit the company brought against the petitioners on Jan 25 this year, alleging fraud on the SA.

The Practice Note 17 company has recently seen a change in shareholding, when businessman Tan Sri Halim Saad was reported on Jan 24 to have ceased to be a substantial shareholder of the company, after disposing of 197.3 million shares for RM1.1 million.

Halim, once Sumatec's largest shareholder, has been paring down his stake in the group since last year. Following the disposal, Halim was left with a 3.168% stake in the group.

Sumatec closed 0.5 sen or 50% lower to 0.5 sen today, for a market value of RM21.3 million.

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