Contents :
We refer to our announcement made on 1 September 2000 and your letter of 4 September 2000, and have pleasure to furnish herewith the information as requested in the said letter.
Harvest Court (M) Sdn Bhd ("HCM") and Interdoor Massivholzturen GmbH ("Interdoor") entered into a MOU on 29 January 1993 whereby HCM agreed to manufacture and supply to Interdoor garden wooden gates on terms and conditions as stipulated in the said MOU.
Soon after delivery of the said gates, Interdoor claimed that substantial and significant defects were discovered on all of the said gates. Interdoor later filed action against HCM for breach of contract alleging that the goods supplied were of unmerchantable quality.
The defence is that the goods were manufactured strictly in accordance with drawings and specifications supplied by Interdoor who moreover inspected the goods at various stages during manufacture and prior to shipment. It was made clear to Interdoor at the outset that HCM has no expertise in manufacturing garden gates for the temperate region and would rely on the drawings and specifications furnished by Interdoor in manufacturing the same.
The problem is believed to have been caused by Interdoor when issuing its specifications, and not fully taking into account the different moisture and atmospheric conditions prevailing at certain times of the year in the country of destination France.
Reports following inspections made in France by qualified personnel of FRIM (Forest Research Institution of Malaysia) support the above opinion, whilst the inspection which was made pursuant to an order from the High Court Shah Alam showed that only a small percentage of the goods ordered was made available for inspection.
Query Letter Contents :
We refer to your announcement dated 1 September 2000.
In this connection, kindly furnish the Exchange with the following additional
information for public release:-
1) Detailed information on the nature of the litigation.
Kindly furnish the Exchange with your reply within two (2) market days from the
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE
Tan Yew Eng
Senior Manager, Listing Operations
TYE/ASL/KRISH