Serial System in dispute with durian JV parties over RM15.4m claim

SERIAL System's S69 : S69 0%55 per cent-owned subsidiary Bast Investment is facing pushback from its durian business joint venture (JV) parties regarding a litigation claim, announced the electronic parts distributor late on Monday (Mar 14).

Bast Investment had previously filed the claim against the group's 27.5 per cent-owned Malaysian JV company, Musang Durians Frozen Food, in the High Court of Malaysia.

It is claiming about RM15.4 million (S$5 million) for Musang Durians' repayment of an outstanding balance of a shareholder's loan from Bast, inclusive of unpaid interest.

Bast also alleges that Musang Durians' managing director and 40 per cent shareholder, Dato' John Lee Siew Neng, failed to pay a guaranteed amount of RM7.7 million, or 50 per cent of the claim.

Both Musang Durians and Lee have responded to the litigation with a Mar 9 statement of defence and counterclaim for RM3.9 million, for alleged outstanding amounts comprising a loss of remuneration and rental owed to Lee by Bast.

Both the statement of defence and counterclaim were received by Bast from its Malaysian lawyers on Mar 11.

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Serial System said it is "confident of success in the litigation and claim", based on its assessment and after taking into consideration the advice of its Malaysian lawyers.

It also believes Musang Durians and Lee's defence and counterclaim has no sufficient basis, and said Bast intends to "both rigorously pursue the claim and defend the counterclaim".

The group has made full accounting provision for the RM15.4 million claim in its financial statements in the previous years ending December 2020 and 2021. It does not expect the claim, nor counterclaim, to have an adverse material impact on its financial statements for the fiscal year ending December 2022.

Shares of Serial System ended Tuesday at S$0.112, down 0.9 per cent or S$0.001.

READ MORE: 

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• Serial System diversifies into durian business

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