Glomac subsidiary says former JV partner demands over RM100 mil
KUALA LUMPUR (Aug 17): A Glomac Bhd subsidiary will defend itself against former joint venture (JV) partner Score Option Sdn Bhd's statement of claim for more than RM100 million, after the latter demanded compensation for a property project.
In a statement to Bursa Malaysia today, Glomac said its wholly-owned subsiary Glomac Alliance Sdn Bhd (GASB) had yesterday received Score Option's statement of claim.
Glomac said Score Option had demanded "a compensation sum of RM107,800,000.00 for the loss of land; unspecified amount of loss of expenses of the project; and 22% of GDV (gross development value) of the project or a minimum of RM47,000,000.00, whichever the higher."
"The financial and operational impact of the pending litigation on the group (Glomac) is dependent on the outcome. The expected losses, if any, arising from this case is RM154,800,000.00, or more. The plaintiff and its directors have been declared insolvent. GASB will file a memorandum of appearance in due course and our solicitor is applying to strike out the suit," Glomac said.
At Bursa Malaysia today, Glomac's share trade has been suspended since 11:51am, in conjunction with the announcement. Glomac said its share trade would resume from 2:30pm.
Glomac shares have not been traded today prior to the suspension. Yesterday, the stock closed at 67 sen, for a market value of RM484.38 million. — theedgemarkets.com
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