KNM unit files injunction to stop winding-up petition

by **hlk** Wed 24 Apr 2013, 12:46

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.