Aspen units demand contractor Tialoc withdraw lawsuit, claims made

ASPEN (Group) on Monday (Oct 16) said its subsidiaries issued a letter of demand to contractor Tialoc Malaysia to withdraw a lawsuit filed in the Penang High Court, and “unequivocally deny” the claims made in the suit.

The group and its subsidiaries – Aspen Glove, Aspen Vision All and KHTP Assets – were named co-defendants, along with Aspen Glove’s former directors, in Tialoc’s writ of summons received on Aug 28.

Tialoc claimed at the time that Aspen Glove owed 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 Glove.

In its latest statement on Monday, Aspen (Group) said the co-defendants demanded that Tialoc withdraw the suit on grounds that the suit is wholly unjust, highly defamatory and a plain case of abuse of process.

It noted that Tialoc, at all material times, was fully aware of the events that transpired, and the circumstances which led to the lease agreement between Aspen Glove and Kulim Technology Park Corporation (KTPC) inked on Sep 1, 2020, and terminated by KTPC on Jun 6, 2023, through a deed of mutual termination.

The group also claimed that Tialoc was aware of Aspen Glove’s winding up petition, as the contractor was involved in talks between Sustainable Waste Management Holdings (SWMH) and Aspen Glove for the sale of its rights title and interest in a piece of leased land, along with the factory built upon it.

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Tialoc’s solicitors, shareholders and/or directors were also involved in direct discussions with Standard Chartered Bank Malaysia and KTPC regarding a cut-off date extension for SWMH to fulfil certain conditions, and negotiations with KTPC for the setting up of a special purpose vehicle to acquire Aspen Glove’s assets and interest in the leased land.

Tialoc, through its solicitors, was also present at Aspen Glove’s hearing to wind up the glove maker’s business, and consented to the winding up.

“Therefore, it is wholly unjustified and improper for Tialoc to allege in the suit that the co-defendants had engaged in fraudulent trading,” Aspen (Group) said.

It added that the co-defendants will commence legal proceedings against Tialoc, its shareholders or any directors, if it does not withdraw its suit.

They include directors from SWMH, Nutara Investment and/or Complant Hong Kong, namely Zhang Peng and Christoph Engel, who were principally involved in the relevant negotiations and discussions.

The legal proceedings will be for all losses the co-defendants sustain arising from the “false and baseless” allegations.

Shares of mainboard-listed Aspen : 1F3 0% last traded at S$0.023 on Oct 6.