KUALA LUMPUR (Aug 23): Bluemount Hong Kong has officially confirmed that it has initiated civil litigation at the Kuala Lumpur High Court against Malaysian-listed Industronics Bhd and five other defendants, according to a statement on Friday.
The fund is seeking full recovery of trust funds allegedly misappropriated without authorisation, totalling US$5.27 million (RM21.3 million), which comprises a US$4.6 million principal and approximately US$552,000 in accrued interest.
Simultaneously, Bluemount has lodged high-level criminal reports with both the Hong Kong Police Force’s Commercial Crime Bureau and the Royal Malaysian Police’s Commercial Crime Investigation Department.
The fund has urgently requested joint cross-border investigations and the freezing of accounts linked to a Hong Kong shell company and relevant senior management under anti-money laundering laws.
Industronics, a Main Market company, was recently classified as a PN17 firm after its auditor issued a disclaimer of opinion on its FY2025 financial statements.
Auditor UHY Malaysia PLT raised concerns over inventories, receivables, revenue and cost of sales, citing documentation gaps, limited audit scope and restricted access to financial data.
The auditor also warned that Industronics’ ability to continue as a going concern hinges on new ventures and financial support from related parties.
In a separate disclosure on Aug 12, Industronics confirmed it had borrowed US$4.6 million from Bluemount in March 2025 for a 36-month term at 12% annual interest, intended for a pre-IPO investment in AMES Hotel or other agreed ventures.
While Bluemount demands full repayment with interest, Industronics has said that it does not admit any breach or default, and no court liability has been established yet at that point in time.
Notably, Bluemount Investment Fund remains a substantial shareholder in Industronics, holding a 6.789% stake.