Aspen subsidiaries slapped with writ of summons for RM15 million refund
Uma Devi
ASPEN Group on Sunday (Feb 12) said its subsidiaries have received a writ of summons filed by the Penang Development Corporation (PDC), seeking a refund of RM15 million (S$4.6 million).
The writ of summons, which was endorsed with a statement of claim, was filed in the High Court of Malaya in Penang regarding the construction of an ingress leading into various parcels of land in Batu Kawan.
Aspen’s subsidiaries in question are Aspen Vision Land and Aspen Vision City.
Along with the writ of summons, PDC is seeking a declaration that the obligation to construct the ingress “has been frustrated or impossible to perform”, along with the refund of RM15 million for the construction of the ingress within 14 days from the date of judgement.
Aspen said it denies that the construction has been frustrated or impossible to perform as alleged by PDC.
The company said it is seeking legal advice on the merits of PDC’s claims. It also noted that the issues pertaining to the construction of the ingress are part of settlement negotiations with PDC. The company had announced the lawsuit about these disputes between these two Aspen subsidiaries and PDC on Oct 7.
“The group will work closely with its solicitors to vigorously defend PDC’s claims while continuing to pursue a global settlement with PDC,” said Aspen.
The company said the suit is not expected to have any material financial impact pending the outcome of the legal proceedings. It also said it will update shareholders on material developments in relation to the matter through filings to the bourse.
Shares of Aspen closed flat at S$0.039 on Friday.
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