Ho Hup gets 'holding over' interim orders

KUALA LUMPUR: Ho Hup Construction Company Bhd has obtained "holding over" interim orders from the High Court here on its application for injunctions relating to the joint development agreement (JDA) dated March 16, 2010 between its 70% subsidiary Bukit Jalil Development Sdn Bhd (BJDSB) and Malton Bhd's subsidiary Pioneer Haven Sdn Bhd (PHSB).

In a statement on Wednesday, May 5, Ho Hup said the orders were made pending the hearing of its applications for injunctions to prevent the parties from giving effect to the JDA. The court also set May 25 for a mention of the case.

Pursuant to the "holding over" interim orders, the defendants are restrained from giving effect to, or relying upon, or otherwise acting in connection with the JDA.

Last month, Ho Hup, a PN17 company, filed a suit against the company's former directors, BJDSB and PHSB over the JDA, seeking a court declaration that it was void. It also sought certain injunctions to halt the implementation of the JDA.

The defendants include former Ho Hup directors Datuk Vincent Lye, Lim Ching Choy, Lai Moo Chan, Long Md Nor Amran Long Ibrahim, Mohd Shahril Hamzah, Foo Ton Hin as well as current director Low Teik Kien. BJDSB directors Woo Thin Choy and Chong Kok Weng are also among the defendants.

The suit also seeks damages from all defendants, except BJDSB.

The JDA between Ho Hup and Pioneer Haven was inked a few hours before Ho Hup's EGM on March 17 that resulted in shareholders removing the former board members. Under the JDA, BJDSB is to develop a 60-acre parcel of freehold land jointly with PHSB.

PHSB would be solely responsible for the financing of the development. BJDSB would not fork out any money and would be entitled to at least RM265 million, or 17% share of the project's gross development value, from Malton, over the various phases of the project.