Aspen receives RM78 million claim for alleged outstanding debts, denies fraudulent trading
Vivienne Tay
ASPEN Group on Wednesday (Aug 30) said that its indirect subsidiary Aspen Glove received a writ of summons endorsed with a statement of claim filed by contractor Tialoc Malaysia in the Penang High Court.
The writ – received on Aug 28 – named Aspen Group, Aspen Glove’s directors, Aspen Vision All and KHTP Assets as co-defendants, the Catalist-listed Malaysian property developer said.
Tialoc has claimed that Aspen Gloves owes it RM78.1 million (S$22.7 million) in outstanding sums plus financing charges. It also alleged that the co-defendants are liable for fraudulent trading and the alleged debts owed by Aspen Gloves.
It is seeking an order that the co-defendants, together with Aspen Glove on a joint and several basis, pay the alleged outstanding sum without any limitation of liability.
Aspen Group said that it “vehemently denies” any allegation of fraudulent trading and is seeking legal advice from its solicitors with a view to “vigorously resist and/or defend the suit”.
On Jul 28, Aspen Glove received an adjudication decision that required it to pay a separate RM84.4 million claim by Tialoc Malaysia.
In response, the subsidiary has filed applications to stay and set aside the legal decision, the group said in its update on legal proceedings.
It does not expect the lawsuit to have any material financial impact on the group, pending the legal proceedings’ outcome.
Shares of Aspen Group closed flat at S$0.03 on Wednesday, before the announcement.
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