KUALA LUMPUR (March 17): Debt-ridden Perak Corp Bhd said one of its creditors has applied for a court order to set aside the group and its subsidiary’s court-sanctioned scheme of arrangement (SOA).
The suit is filed by Mohamed Shafeii Abdul Gaffoor, a scheme creditor representing less than 0.02% of the total sum owing under the SOA, according to Perak Corp's Bursa Malaysia filing on Friday (March 17). The suit was filed at the Ipoh High Court on Feb 20.
In court documents sighted by The Edge, Mohamed Shafeii said he took the legal action after new evidence surfaced during proceedings in the Ipoh Magistrate's Court, which ruled in September last year that there were elements of crime detected in the diversified group's restructuring exercise.
Mohamed Shafeii alleged that Perak Corp's statement in the SOA about having more liabilities than assets is incorrect and misleading. The company, he claimed, has assets totalling RM1.33 billion, while its liabilities under the SOA was at RM858.37 million. The SOA also does not take into account the potential earnings or debt that can be realised or recovered, he said.
In view of that, Mohamed Shafeii is seeking the court’s leave to object to and set aside the SOA, saying it is no longer valid, and wants the court to appoint a receiver and manager to manage the company in a more equitable manner.
The legal suit confirms a report by The Edge Malaysia weekly, published for the week of Oct 17-23 last year, that at least one creditor of the company would be seeking legal redress against the group and question the validity of the restructuring exercise with its creditors following the Ipoh court's ruling. The court has since referred the matter back to the police for further investigation.
The weekly also understood that other parties that had joint venture agreements with Perak Corp were considering legal action.
Meanwhile, the diversified group, in its latest filing, said it has appointed solicitors to represent Perak Corp, its wholly owned PCB Development Sdn Bhd, SOA adviser Ferrier Hodgson Mh Sdn Bhd, as well as the group’s directors and former directors who have been named as respondents in the suit filed by Mohamed Shafeii.
The current directors are: Datuk Redza Rafiq Abdul Razak, Zainal Iskandar Ismail, Andy Liew Hock Sim and Tan Chee Hau, while the former directors are: Tan Sri Abdul Rashid Abdul Manaf and Tan Sri Kunasingam Sittampalam.
“Based on legal opinion obtained by the company, the board of directors of Perak Corp are of the view that the said originating summons by Mohamed Shafeii has no merits,” Perak Corp said, adding the case has been fixed for mention on March 20.
“As at the date of this announcement, there is no significant and operational impact arising from the originating summons on the company,” the group added.
Shares in Perak Corp ended unchanged at 22.5 sen on Friday, giving the group a market capitalisation of RM22.5 million.
Perak Corp’s restructuring scheme in the spotlight