Date : 21 June 2011
MATERIAL LITIGATION TALIWORKS CORPORATION BERHAD (“Taliworks” or “the Company”) - Initiation of Civil Suit by Beijing Puresino Boda Environmental Engineering Co Ltd (“BODA”) against Puresino (Guanghan) Water Co Ltd (“Puresino Guanghan”), a subsidiary of Taliworks Plaintiff : BODA Defendant : Puresino Guanghan
|TALIWORKS CORPORATION BERHAD|
|Description||TALIWORKS CORPORATION BERHAD (“Taliworks” or “the Company”)|
- Initiation of Civil Suit by Beijing Puresino Boda Environmental Engineering Co Ltd (“BODA”) against Puresino (Guanghan) Water Co Ltd (“Puresino Guanghan”), a subsidiary of Taliworks
Plaintiff : BODA
Defendant : Puresino Guanghan
The Board of Directors of Taliworks wishes to announce that BODA had on 15th June 2011 commenced a civil suit against Puresino Guanghan, a subsidiary of the Company, at the Sichuan Deyang City Intermediate People’s Court (“the Court”) to seek amongst others, the following claims against Puresino Guanghan:-
(i) That Puresino Guanghan fulfils its obligation to immediately repay its loan due to BODA amounting to RMB3,215,000.
(ii) That Puresino Guanghan pays interest (interest to be calculated based on the interest rate fixed by the People’s Bank of China, in the People’s Republic of China) to BODA for the period commencing from the date of judgment until the date of full settlement of the loan.
(iii) That the cost of legal proceedings shall be borne by Puresino Guanghan.
Following an application to the Court by BODA to freeze the assets of Puresino Guanghan, the Court had on 15th June 2011 decided to freeze the said assets of Puresino Guanghan in the sum of RMB3,500,000 with immediate effect. However, Puresino Guanghan is allowed to appeal to the Court on the said decision.
Based on the above, Puresino Guanghan has been given notice by the Court to file their defence within fifteen (15) days from the date of receipt of the civil suit.
Puresino Guanghan is in the midst of seeking legal advice from its solicitors and will be filing its defence to the above suit in due course.
At this juncture, the civil suit is at the preliminary stage and the outcome unknown. However, if the Court decides to award payments to BODA in the amount as stated above, it will not have any material financial and operational impact on Taliworks.
None of the Directors or substantial shareholders of Taliworks or persons connected to them has any interest, direct or indirect, in the said suit.
The Company will make further announcements on material developments on this matter from time to time.
This announcement is dated 21st June 2011.
|Company Name||TALIWORKS CORPORATION BERHAD|
|Date Announced||21 Jun 2011|