NEXGRAM HOLDINGS BERHAD (“NEXGRAM” OR “COMPANY”) FILED LEGAL SUIT AGAINST MR LAU TIAN KIT A DIRECTOR OF BLUE HILL DEVELOPMENT SDN BHD. (“The Law Suit 2) [27 Aug 2018]

MATERIAL LITIGATION NEXGRAM HOLDINGS BERHAD (“NEXGRAM” OR “COMPANY”) FILED LEGAL SUIT AGAINST MR LAU TIAN KIT A DIRECTOR OF BLUE HILL DEVELOPMENT SDN BHD. (“The Law Suit 2)

NEXGRAM HOLDINGS BERHAD

 

Type Announcement
Subject MATERIAL LITIGATION
Description
NEXGRAM HOLDINGS BERHAD ("NEXGRAM" OR "COMPANY") FILED LEGAL SUIT AGAINST MR LAU TIAN KIT A DIRECTOR OF BLUE HILL DEVELOPMENT SDN BHD. ("The Law Suit 2)

1. Introduction and Background

 

The Board of Directors of Nexgram Holdings Berhad (“the Company”) wishes to announce that the Company and Coconut Three Sdn Bhd (formerly known as Nexgram Land Sdn Bhd) (“CT”), of which, CT was formerly held 70% of Blue Hill Development Sdn Bhd (“BH”), both the Company and CT (collectively known as “Nexgram”) concurrently filed a law suit respectively against Mr Lau Tian Kit, a director of BH.

2. Information of the Lawsuit 2
CT (the First Plaintiff) & the Company (the Second Plaintiff) (Jointly known as “Nexgram”) vs Lau Tian Kit (Defendant) – Case 2

 

Nexgram had issued a Writ of Summon and Statement of Claim (Case Ref: TA-22NCC-7-08/2018) dated 21 August 2018 respectively filed with the High Court of Kuala Trengganu claiming for the sum of RM13.0 million (Ringgit Malaysia: Thirteen Million) served on the Defendant for compensation and damages for misrepresenting the First Plaintiff to have acquired the 70% equity interest in BH from the Defendant.

 

BH was found to be profitable and solvent while the First Plaintiff was considering the acquisition of the equity interest in BH. With the Defendant and his late wife’s willingness to provide a profit guarantee to the First Plaintiff as a guarantee that BH is a profit making company, the First Plaintiff had acquired 70% equity interest in BH.

 

However, BH was unable to meet the profit guarantee of RM2,000,000-00 during the guarantee period from 1 October 2016 up to 30 September 2017, in fact, had incurred a loss of RM5,250,311.00.

 

In that connection, Nexgram now claiming the following from the Defendants for the misrepresentations made:-

 

a. Damages against the Defendant for the Sum of RM7.0 million (Ringgit Malaysia Seven Million) or such other sum as the Honourable Court thinks fit to the First Plaintiff and Second Plaintiff as compensation for refusal to provide the audited accounts and to allow access to the internal and external auditor of the First Plaintiff and Second Plaintiff which had caused damage to the First Plaintiff and Second Plaintiff;

b. Damages against the Defendant for the Sum of RM6.0 million (Ringgit Malaysia Six Million) or such other sum as the Honourable Court thinks fit to the Second Plaintiff as compensation for writing to Bursa Malaysia without the authorisation of the Board of Directors of the Second Plaintiff which had caused damage to the Second Plaintiff;

c. Equitable compensation and others.

 

The Case Management fix on 6 September 2018.

         3. Financial Effects of the lawsuits
  The lawsuits will not have any material impact on the issued share capital, net assets, earnings, gearing and substantial shareholdings of the Group for the financial year ending 31 July 2018 and 31 July 2019, except for the additional expenses incurred in the relation to The Law Suit 2.
   
         4. Directors’ and Substantial Shareholders’ Interest
  None of the Directors and substantial shareholders of the Company or persons connected to them have any interest, direct or indirect in The Law Suit 2.
   
         5. Statement by Directors
  The Board of Directors, after having considered all aspects, is of the opinion that the lawsuits is in the best interest of NEXGRAM Group.

 

   

This announcement is dated 27 August 2018.