The Company wishes to inform that Kilang Bihun Bersatu Sdn Bhd (“KBBSB” or “Respondent”), a wholly-owned subsidiary of EKA had been served with a Petition and Affidavit Verifying Petition through a firm of lawyers acting on behalf of Great Line Success Sdn Bhd (“Petitioner”). The Company wishes to inform that Kilang Bihun Bersatu Sdn Bhd (“KBBSB” or “Respondent”), a wholly-owned subsidiary of EKA had been served with a Petition and Affidavit Verifying Petition through a firm of lawyers acting on behalf of Great Line Success Sdn Bhd (“Petitioner”). 

The petition was fixed for Hearing on 09 October 2017 at the Penang High Court and the case has now been fixed for case management on 07 November 2017.

Particulars of the claim

The total sum owed by the Respondent to the Petitioner to-date is RM349,801.99 and the Respondent has admitted to the debt in the Form 75 and Form 76 Companies Act 2016 dated 20 March 2017 and 14 June 2017 duly filed.

Circumstances leading to the filing of the winding-up petition

The Petitioner supplied plastic packaging materials to KBBSB. The trade payables have been overdue since September 2016 due to financial condition of KBBSB. 

Confirmation of major subsidiary and total cost of investment

KBBSB is a major subsidiary of EKA and the total cost of investment is RM17,441,860.00.

Financial & Operational Impact

The petition will not have any financial or operational impact on Group.

Expected losses to the Group, if any

KBBSB is exposed to the claim, interests and legal expenses as stated above.

Steps taken by the Company

KBBSB had appointed a firm of lawyers to act on its behalf for the case management fixed on 07 November 2017.

This announcement is dated 09 October 2017.