Published: Wednesday April 24, 2013 MYT 11:06:00 AM
Updated: Wednesday April 24, 2013 MYT 4:02:59 PM
KNM gets court order to restrain winding-up petition (Update)
KUALA LUMPUR: KNM Group Bhd's unit KNM Process Systems Sdn Bhd has obtained a court order to stop Mission Biofuels Sdn Bhd from going ahead with the petition to wind up the company over a A$3.80mil (RM12.2mil) claim.
It said on Wednesday the court had granted an interim injunction to restrain Mission Biofuels from proceeding further with the petition upon hearing of KNM Process Systems Sdn Bhd (KNMPS) ex-parte application earlier this morning.
"The application will be heard inter-partes on May 9, 2013," it said.
KNM also said KNM Process Systems was not a major subsidiary of the company as defined under Bursa Securities's Main Market Listing Requirements.
Below is the earlier story
KUALA LUMPUR: KNM Group Bhd's unit KNM Process Systems Sdn Bhd has filed an injunction to stop Mission Biofuels Sdn Bhd from going ahead with the petition to wind up the company over a A$3.80mil (RM12.2mil) claim.
KNM had on Tuesday described Mission Biofuels' action to file the petition was "not only frivolous and vexatious but is also tainted with malicious intent and a clear and blatant abuse of process".
It said KNM Process Systems had on Monday, filed an injunction to restrain Mission Biofuel from proceeding with the petition and it would apply to strike out legal action.
At 10.55am on Wednesday, KNM share price was unchanged at 45.5 sen. There were 1.81 million shares done at prices ranging from 45.5 sen and 46.5 sen.
The FBM KLCI rose 3.07 points to 1,703.46. Turnover was 163.43 million shares valued at RM232.62mil. There were 203 gainers, 177 losers and 259 counters unchanged.
To recap, Misson NewEnergy Ltd told the Australian Stock Exchange on Monday its subsidiary Mission Biofuels Sdn Bhd had served the petition to wind up KNM Process System for not paying the A$3.80mil plus interest.
It had then claimed the amount was related to liquidated ascertained damages under the engineering, procurement, construction and commissioning contract (EPCC) of Mission's second biodiesel refinery in Malaysia.
Mission NewEnergy also claimed these invoices were presented to KNM Process System over the last two years and despite a letter of demand served on KNM by Mission Biofuels' solicitors, KNM had failed to pay.
In the latest development, KNM said there was no impact to the group following the petition.
"In response to the said petition, KNM wishes to add that in regards to Mission Biofuel claiming that they have submitted invoices and letter of demand, they selectively failed to disclose that all invoices were rejected and letter of demand had been denied by KNM's solicitors. Therefore, the said petition served against KNM Process System is nothing but exasperating and retaliatory in nature," it said.