Sumatec proposes to settle Hoe Leong, Ebony Ritz lawsuit for RM27 million

PETALING JAYA: Sumatec Resources Bhd has proposed to settle a lawsuit with Hoe Loeng Corp Ltd and Ebony Ritz Sdn Bhd for RM27 million.
In Bursa Malaysia filing, the oil and gas service provider said it has entered into an agreement with the parties, which have agreed to end all litigation upon Sumatec’s successful completion of ts corporate exercise no later than Oct 30.
Sumatec has proposed to settle the RM27 million through the payment of RM7 million cash and the issuance of redeemable convertible preference shares in the value equivalent to RM20 million to Ebony Ritz.
However, it said the settlement agreement is conditional upon approvals from the official receiver of Malaysia on behalf of Ebony Ritz as well as Sumatec’s and Hoe Leong’s board of directors.
“All such approvals (need) to be provided no later than 45 days from the date of the settlement agreement,” Sumatec said.
Upon having obtained the approvals, the group said the parties shall withdraw all litigation cases involving between the parties within one week, including Ebony Ritz’s claim in the High Court of Singapore against Sumatec, Sumatec’s counterclaim and Sumatec’s appeal to Singapore’s Court of Appeal against the High Court’s judgement on Nov 9, 2017.
On Bursa Malaysia today, Sumatec was unchanged at 6.5 sen on some 10.26 million shares changing hands.