KNM Group has filed a writ action at the High Court of Malaya at Kuala Lumpur against Flavio Porro and Terence Tan Koon Ping, both former Executive Directors of the group for among others, conspiracy, breach of duty of loyalty and fidelity negligence and breach of statutory duties.
It has the defendants to pay the Plaintiff the amount of EUR 3,444,832.16 (equivalent in currency exchange EUR 1 x RM 5.01= RM 17,258,609.12) or any other sum quantified by the Court.
The Civil suit is in relation to the sale of the 3rd Plaintiff to Vorsprung Industries GmbH (‘the Borsig sale’) which was later terminated in December 2022. The Plaintiffs contend that the Defendants as the Directors, at the material time, owed to the Plaintiffs, amongst others, obligations under common law, equity, and the Companies Act 2016.
As the sale of Borsig was aborted in December 2022, due to the obligations imposed under the “Project Bear Cost Cover and Break-Up Fee Arrangement” and “Amendment Agreement to Project Bear Cost Cover and Break-Up Fee Arrangement” to absorb the Due Diligence Costs regardless of the circumstances, the Plaintiffs were compelled to enter into a settlement with Vosprung, although the cancellation of the sale was due to Vosprung.
