KUALA LUMPUR (Jan 12): Mechanical and electrical engineering services specialist Bintai Kinden Corp Bhd and its wholly-owned subsidiary Kejuruteraan Bintai Kindenko Sdn Bhd (KBK) have been hit with a lawsuit by Dynamic Prestige Consultancy Sdn Bhd (DPCSB), which is seeking a refund of RM16.23 million, plus 5% interest on the sum, from Bintai Kinden and KBK.

DPCSB alleged that it had extended interest-free, unsecured and with no fixed term of repayment “friendly loans” and/or “advances” over several tranches to KBK between June 1, 2021 and Dec 1, 2022 for the amount of RM16.23 million.

In a filing with Bursa Malaysia on Friday, Bintai Kinden said the writ of summon and statement of claim (SOC) against Bintai Kinden, KBK and three others was filed on Jan 9 with the High Court of Malaya, Kuala Lumpur.

On its part, Bintai Kinden and KBK has filed an application to quash the suit against them. "This does not represent nor is acting in concert with the other three defendants," said Bintai Kinden. It is also claiming for exemplary damages from DPCSB for the latter's action, which Bintai Kinden deems malicious.

It added that from DPCSB’s claim on the subscription of the redeemable convertible preference shares (RCPS), KBK has repaid RM5.04 million as at Oct 25, 2022. "The amount outstanding as of today is RM652,600.80, which was for the subscription of 241,704 units of RCPS. This RCPS is due for redemption 60 months from the date of issuance of the RCPS. The RCPS and amount have been disclosed in BKCB’s 2023 Annual Report Note 21 and are not disputed by either DPCSB or KBK," said Bintai Kinden.

The balance of RM10.95 million was extended to KBK for working capital purposes and has been fully repaid on Oct 7, 2022, it added.

"The board of directors has consulted its legal advisor and is of the view that the plaintiff’s writ and SOC is baseless, frivolous, mala fide, abuse of the court process and a desperate after-thought action with the sole intent to cause disrepute to the Bintai Kinden group of companies."

Bintai Kinden shares closed down 0.5 sen or 5.88% at 8 sen on Friday, giving it a market capitalisation of RM70.91 million. Its share price has fallen by 20% over the past year.