Material Litigation
| Type | Announcement |
| Subject | MATERIAL LITIGATION |
| Description |
SALCON BERHAD ("SALCON" OR "THE COMPANY") NOTICE TO COMMENCE ARBITRATION PROCEEDINGS BY SALCON MMCB AZSB JV SDN BHD AGAINST PENGURUSAN ASET AIR BERHAD |
Further to our announcements of 17 April 2014, 26 August 2020, 28 September 2020 and 2 October 2020, unless otherwise stated, the abbreviations used in this announcement shall have the same meaning as set out in the earlier announcements.
Salcon wishes to furnish additional information to question number 3 of Bursa Malaysia Securities Berhad's query letter dated 1 October 2020 as follows:
3. The estimated potential liability to Salcon Berhad group of companies arising from the Counterclaim
There is no liability to Salcon Berhad group of companies arising from PAAB’s Counterclaim as any amount awarded to PAAB (if any) would be borne by SMAJV and neither Salcon Berhad nor Salcon Engineering Berhad had given any corporate guarantee to SMAJV. SMAJV is a separate legal entity and the liability (if any) is limited to the issued share capital of the company.
However, under the perspective of equity accounting, Salcon Berhad will have to book in the losses to be incurred by SMAJV (if any) arising from the Counterclaim in accordance to its shareholding proportionately. The estimated losses to be incurred by SMAJV (if any) arising from the Counterclaim based on the shareholding of Salcon Engeering Berhad in SMAJV would be RM5,510,701. However, the actual amount payable (if any) would be subject to the outcome of arbitration proceeding.
This announcement is dated 8 October 2020.
Announcement Info
| Company Name | SALCON BERHAD |
| Stock Name | SALCON |
| Date Announced | 08 Oct 2020 |
| Category | General Announcement for PLC |
| Reference Number | GA1-08102020-00013 |