| Type | Reply to query |
| Reply to Bursa Malaysia's Query Letter - Reference ID | GG-120705-37741 |
| Subject | Others |
| Description | Writ of Summons |
| Query Letter Contents | We refer to your Company's announcement dated 4 July 2012 in respect of the aforesaid matter. In this connection, kindly furnish Bursa Securities with the following additional information for public release:- (i) The date the writ of summons was served on KKB Builders Sdn Bhd ("KKBBSB"); (ii) The details of the circumstances leading to the filing of the writ of summons against KKBBSB; (iii) A confirmation as to whether KKBBSB is a major subsisidiary; (iv) To state the total cost of investment in KKBBSB; and (v) The principal activity of KKBBSB and whether the writ of summons has any financial and operational impact to the group. Please furnish Bursa Securities with your reply within one (1) market day from the date hereof. Yours faithfully HENG TECK HENG Head, Issuers Listing Division Regulation TGG copy to:- General Manager & Head, Market Surveillance, Securities Commission (via fax) |
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Further to the announcement made on 4 July 2012 in relation to the above matter, KKB Engineering Berhad ("the Company") wishes to further announce that: (i) The Writ of Summons was served on KKBBSB through its lawyers, Messrs Battenberg & Talma Advocates on 29 June 2012. (ii) a) On 12 July 2011, KKBBSB sub-contracted its proposed earthworks in Samalaju Industrial Park, Bintulu to Global Upline Sdn Bhd (“GUSB”). It is awarded on the basis of a Fixed Lump Sum Contract.
c) As a result of GUSB’s failure to remedy and rectify the said breaches, KKBBSB terminated the employment of the sub-contractor vide a letter dated 21 June 2012. GUSB has failed to carry out its obligations under the sub-contract agreement without any valid grounds. GUSB has failed to proceed regularly and diligently with the sub-contract works resulting in delay, failed to execute the sub-contract works in accordance with the sub-contract agreement, stopping work and abandonment of works, all without any valid grounds. d) Upon the termination, KKBBSB took possession of the site and proceeded to take over and execute the balance of the sub-contract works effective 22 June 2012. e) On 26 June 2012, GUSB issued a Writ of Summons and served on KKBBSB through its lawyers, Messrs Battenberg & Talma Advocates seeking a declaration that the Notice of Termination of the sub-contract issued by KKBBSB was illegal, null and void and claiming the sum of RM31,643,887.15 comprising payments for work done and Variation Orders. They are also claiming for interest and costs. f) The sub-contract is a Fixed Lump Sum Contract. The alleged Variation Orders are without basis and irrelevant and in any event fell within the ambit of the Fixed Lump Sum Contract. KKBBSB has paid GUSB interim payment claims and which are in excess of actual work done after verification. (iv) Total investment in KKBBSB to-date is RM1.0 million. (v) The principal activities of KKBBSB are to carry on trade or business as building contractor, civil engineering, earthworks, water engineering works and other contracting services. There is no operational impact as KKBBSB has taken possession and proceeded with execution of the balance of the sub-contract works effective 22 June 2012. The Company is of the opinion that there is no material financial impact on the Group as GUSB’s claim is without basis, frivolous and vexatious. (vi) Further announcement on any material development on the above matter will be made in due course. This announcement is dated 6 July 2012. |
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| Company Name | KKB ENGINEERING BERHAD |
| Stock Name | KKB |
| Date Announced | 6 Jul 2012 |
| Category | General Announcement |
| Reference No | CC-120706-54336 |
