Classita reaches settlement over RM3.96m advance provided by Tee Yam, Jessie Wong

Saturday 27 Apr 2024

KUALA LUMPUR (April 5): Classita Holdings Bhd has reached a settlement with its substantial shareholder Datuk Seri Tee Yam @ Koo Tee Yam and former executive vice-chairman Jessie Wong Siaw Puie over a RM3.96 million advance the latter provided to the loss-making Perak-based lingerie and apparel maker.

Classita, formerly known as Caely Holdings Bhd, said in a statement on Wednesday (April 5) that the legal dispute between the parties was settled amicably without admission of liability and a consent judgement had been recorded.

A suit filed by Tee Yam and Wong in November last year, claimed that they had advanced Classita a total sum of about RM3.96 million for day-to-day operation and management costs.

Classita said its board of directors was satisfied that several advancements were received from Tee Yam and Wong following a detailed internal inspection and audit.

“As such, Classita negotiated a settlement with the plaintiffs at the mutually agreed sum of RM3.30 million instead of the claimed amount of RM3.96 million,” the group said.

The group also said it is committed to allocating all its available resources towards the efforts of recovering all monies believed to have been misappropriated from Classita, be it in current, ongoing or future legal actions.

Classita’s current board had in October last year filed a civil suit against founder Datin Fong Nyok Yoon, her husband Datuk Chuah Chin Lai and 10 others pertaining to alleged misappropriation of funds amounting to not less than RM30.55 million from the group’s subsidiary Caely (M) Sdn Bhd.

Classita’s executive chairman Ng Keok Chai said the current board of directors remained focused on strengthening the existing business to improve the group’s financial position.

“Besides the lingerie manufacturing business, the company is also working to revive the property development business with high-quality property development projects out of the bustling Klang Valley and any other business opportunities that arises,” he said.

The misappropriation of funds in Classita had also caught the attention of the police, which launched an investigation into businessman Victor Chin Boon Long's alleged involvement in using enforcement authorities to take control of Malaysian corporates.

Shares of Classita closed half sen or 3.45% lower to 14 sen on Wednesday, giving it a market capitalisation of RM47.68 million.

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