|KUANTAN FLOUR MILLS BHD|
KUANTAN FLOUR MILLS BERHAD (" the Company" or "KFM") Kuala Lumpur Magistrates Court Summons No: WA-A72NCC-79187-12/2016 -Writ of Summons and Statement of Claim filed by DPO Malaysia Sdn Bhd ("DPO" or" the Plaintiff") against KFM
The Board of KFM wishes to inform that the Company had on 27 December 2016 received a Writ of Summons and Statement of Claim dated 15 December 2016 from DPO vides its solicitors.
(1) Date of receipt of the Writ of Summons and Statement of Claim
Both the Writ of Summons and Statement of Claim were served on KFM vide DPO’s solicitors via a letter dated 19 December 2016 of which KFM received on 27 December 2016.
KFM is required to file a Memorandum of Appearance in Court within 14 days from the date of service of this Writ.
(2) Particulars of the claim under the Writ, including the amount claimed for and the interest rate
The claim pursuant to the Writ of Summons and Statement of Claim is as below:
(a) The sum of RM74, 050 being the amount owing by KFM;
(b) Interest on the amount outstanding / pending at the rate of 18% per annum from 15 May 2015 until the date of the judgment and interest on the judgment sum at the rate of 5% per annum from the date of judgment until full settlement;
(c) Cost and any other relief that the Honorable court deem fit and proper.
(3) Details of the default or circumstances leading to the filing of Writ of Summons against KFM
The circumstances leading to the filing of Writ was due to a dispute on the total amount claimed by DPO.
(4) The financial and operational impact of the Writ of Summons on the Group
The Writ is not expected to have material financial and operational impact of the Group
(5) The expected losses, if any, arising from the Writ
Save and except for the outstanding payment sum due and the legal cost in defending against the Writ, the Company is not expected to incur any further losses arising from the Writ.
(6) Proposed steps to be taken in respect of the Writ
KFM is seeking the necessary legal advice to remedy this situation.
Further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.
This announcement is dated 28 December 2016