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Libra Group and units receive writ of summons

CATALIST-LISTED Libra Group and its subsidiary YC Capital Consolidated Sdn Bhd, YC Capital unit YC Travel & Tours Sdn Bhd (YCT), and Libra Group chief executive officer Chu Sau Ben were served a writ of summons in the High Court of Kuala Lumpur on Oct 12, the company announced in a Singapore Exchange filing late on Friday night.

The writ of summons, endorsed with a statement of claim, was filed by Low Kee Kian, Phan Cheen-Hau, Lee Ching Mei, Koh Kwan Hong,
Choong Hin Seong and Anuar Bin Ahmad. The plaintiffs allege, among others, that the consideration for certain transfers of shares of YCT subsidiaries from them to YCT, amounting to an aggregate S$5 million, has not been paid by YCT.

The YCT subsidiaries named are Tian Di Global Sdn Bhd, FAME Local Products Sdn Bhd and KL Premium Outlet Sdn Bhd.

In its statement, Libra Group said it and the other defendants are disputing the allegations and "intend to strenuously defend" themselves. Upon receiving the writ of summons, the defendant group immediately appointed Malaysia counsel and sought legal advice on the allegations, it added.

On Friday, the Malaysia counsel issued a letter to the defendants after a preliminary review of the allegations. The letter stated, among others, that the allegations are based solely on a verbal conversation without any supporting written documentations such as shareholder agreements, share sale agreements and acquisition agreements, and as such, the civil suit filed by the plaintiffs is groundless, mala fide and unsupported.

Libra Group said it will make the relevant update announcements in compliance with the Catalist rules where there are developments on this matter. Libra Group had completed the acquisition of a 51 per cent stake in YC Capital in March.