Friday 21 Jun 2024
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KUALA LUMPUR (Sept 21): Toyo Ventures Holdings Bhd is looking to have a US$10.36 million (RM48.62 million) lawsuit it faces from KS Lee Energy Llp, in relation to a terminated agreement linked to a coal-fired power plant project in Vietnam, to be disposed of prior to going to full trial.

In a bourse filing on Thursday, the printing ink and precision mould maker said its wholly-owned subsidiary Toyo Ink Group Bhd (TIGB) — the defendant in the suit — has filed an application for summary disposal of the suit.

“TIGB’s application was heard by the judge on Sept 15 and 21, 2023. After hearing submissions from counsel, the judge reserved his decision to be delivered on Oct 4, 2023,” it added.

Toyo Ventures said it has been advised that the summary disposal application has a "good prospect of success".

According to the group's prior bourse filings, the lawsuit is related to an agreement concerning the 2.12GW coal-fired power plant project Song Hau 2, which was inked between TIGB and KS Lee Energy in January 2018. The agreement was subsequently terminated in July last year.

However, KS Lee Energy under the suit is claiming US$10.37 million in equity success and debt success fees it claimed to be remunerated under the agreement.

In a bourse filing in May this year, Toyo Ventures said: “As far as the board of directors of Toyo Ventures is concerned, and subject to legal counsel’s advice, the plaintiff (KS Lee Energy) is not entitled to the project success fee.”

Shares in Toyo Ventures closed unchanged at RM1.43, giving the group a market capitalisation of RM168.31 million.

Edited ByS Kanagaraju
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