KUALA LUMPUR (Jan 22): Export-Import Bank of Malaysia Bhd (EXIM Bank) has filed a lawsuit against instant coffee manufacturer Power Root Bhd (KL:PWROOT), seeking RM7.39 million over insurance claim payout dispute. 

According to Power Root’s filing with Bursa Malaysia on Wednesday, EXIM Bank is demanding repayment of RM675,509.22 disbursed to its subsidiaries, namely Power Root (M) Sdn Bhd (PRM), Power Root Manufacturing Sdn Bhd (PRMFG), and Power Root ME Free Zone Company (PRME).

The bank is also claiming an additional RM6.72 million linked to a separate insurance policy agreement involving the same subsidiaries. Both agreements were executed in 2012.

In addition, EXIM Bank is seeking general, exemplary, and punitive damages, as well as interest and legal costs.

Power Root, however, denies all claims and allegations in their entirety. The company maintains that its subsidiaries have strong grounds to contest the claims, asserting that insurance claims under the Comprehensive Policies were submitted in full compliance with the policy terms.

The company also argued that the rights over the outstanding debts, which formed the basis of the insurance claims, had already been assigned to EXIM Bank.

“Any recovery of those debts falls solely with EXIM Bank,” it stated.

The matter is scheduled for case management via e-Review on Feb 3.

In the meantime, Power Root said the claims are not expected to have any immediate material financial impact on the company for the financial year ending March 31, 2025.

Shares of Power Root closed unchanged at RM1.50 on Wednesday, valuing the beverage firm at RM642.7 million.