KUALA LUMPUR (April 29): HHRG Bhd was slapped with a RM58.18 million suit by Ooi Chieng Sim, in relation to a loan given out by the former executive chairman to the company. 

The suit, filed by Ooi and his private vehicle Skylitech Resources Sdn Bhd, named HHRG as defendant alongside managing director H’ng Choon Seng and deputy MD Kee Swee, as well as three of HHRG’s units.

Pursuant to the claims, Ooi said alleged HHRG’s three units — HK Gua Musang Sdn Bhd (HKGM), Fibre Star (M) Sdn Bhd (FSM) and HK Kitaran Sdn Bhd (HKK) — defaulted payment for RM10 million worth of loan he provided. 

He said HHRG unlawfully converted the said loan into HHRG shares, which were given to H’ng and Kee. Ooi is also seeking 5% interest on the sum claimed. 

Formerly known as Heng Huat Resources Group Bhd, the biomass material manufacturer said its subsidiaries have received a letter from Ooi and Skylitech last Tuesday (April 23), together with a writ of summons and statement of claim issued by the Penang High Court.

HHRG has denied the claims. “Neither of the companies has conducted or engaged any commercial transaction and business dealings with the plaintiffs.

“Neither of the companies has, at any time, received loan, borrowings, facilities or any kinds of financial assistance from the plaintiffs,” it noted.

It added that, based on the books and records of the companies, there is no sum due and owing to Ooi and Skylitech. 

“Under no circumstances, as observed by the company, shall the companies be held liable for any sum as the claims made by the plaintiffs,” it added.

HHRG said it shall appoint its solicitors, take all necessary actions and pursue all available remedies to defend and protect the company’s position. 

It shall also pursue compensation from the Ooi and Skylitech for any and all damages incurred by the company as a result of their actions.
 
HHRG’s share price settled unchanged at 19 sen, giving the group a market capitalisation of RM165 million.