17 November 2017 – The Board of Directors of Nexgram wishes to announce that Blue Hill Development Sdn Bhd (“BHD”), a 70% owned subsidiary of Nexgram has received multiple Writ of Summons (“the Writs”) and Statement of Claims (“the Statement of Claims”) for a total of RM2.83 million from the respective Plaintiffs’ Solicitors stated hereunder.
All the Plaintiffs are claiming for the long outstanding debts in respect of the cause of action stated below.
Confirmation as to whether the subsidiary is a major subsidiary:
BHD is not a major subsidiary.
Financial and Operational Impact:
The Writs and Statement of Claims will not be expected to have any material financial and operational impact
on Nexgram Group as BHD recorded and accounted for the judgement sum in their balance sheet.
The Board did not make any announcement before because individually, the Writ of Summons and Statement of Claim is
below the materiality threshold of Nexgram in respect of its obligation to make immediate disclosure.
Steps taken in respect of the Writs:
BHD had obtained a restraining order from the Court of Appeal dated 29/08/2017 (“the Order”) that a meeting of the
creditors of BHD be convened within three (3) months from the date of the Order (with liberty to apply to the High Court
to seek further extension of time) to consider and if thought fit, approve a scheme of arrangement to be proposed
between BHD and its creditors.
Additionally, Nexgram Land Sdn Bhd (“NLand”) the wholly-owned subsidiary of the Company has on 21/08/2017 filed a counter-claims against Spacious Glory Sdn Bhd (the Vendor of the Shares in Blue Hill Development Sdn Bhd purchased by NLand) claiming that the abovementioned Writs which clearly proof a fundamental breach on the part of the Vendor against the due diligence confirmation provided by the Vendor at the conclusion of the due diligence exercise conducted by NLand prior to the acquisition of the Shares. The proceeding of the counter-claim is currently an on-going matter in Court.
The estimated potential liability to the Nexgram Group arising from the abovementioned litigation would be RM2.83m.
This announcement is dated 17 November 2017.