Magma Group Berhad (Magma) announced that the court had granted permission for Public Bank Bhd to withdraw suit against defendants, which includes its wholly-owned subsidiary, Astaka Mekar Sdn Bhd during a case management yesterday.
“This withdrawal is executed with the liberty to file afresh and without any order as to costs, marking a pivotal moment for the company,” it said in a statement today (Jan 10).
Magma, which was formerly Impiana Hotels Berhad (Impiana), is an investment holding company, which operates primarily in the hospitality industry.
Last June, the then-Impiana had told Bursa that Public Bank is suing the company’s subsidiary Astaka Mekar Sdn Bhd for RM44.36 million over an alleged failure to settle the outstanding amounts owing under four term loan facilities and an overdraft facility.
It was reported that Data Sepadu Sdn Bhd, Impiana Sdn Bhd, and Datuk Seri Ismail Farouk Abdullah, who served as the facilities’ guarantee were also named as defendants in the lawsuit.
The company said the suit, originally filed by Public Bank Berhad (the plaintiff) against its subsidiaries and associated parties (defendants), stemmed from disputes regarding the settlement of outstanding sums under various term loan facilities and overdraft facility.
Public Bank, it said, had sought substantial repayments, including accrued interest, from the defendants under these facilities
“In the positive turn of events, the court had allowed for a withdrawal of the suit, signals a hopeful stride for Magma Group Berhad.
“It offers an avenue for the company to recalibrate its focus and strategies for future opportunities, untethered from the constraints of this protracted legal battle,” it added.
Expressing his views on this development, Magma managing director Datuk Sri Thomas Liang Chee Fong said the decision marks a watershed moment for Magma Group Berhad.
“It allows us to start afresh, leaving behind the challenges we’ve faced in the legal arena. Our focus now shifts to harnessing new opportunities and reinforcing our commitment to sustainable business growth.
“We are optimistic about the future and are poised to explore new avenues that align with our strategic objectives,” he said.
The company said it remains steadfast in its commitment to uphold strong corporate governance and ethical business practices.
“The company believes that this new chapter will enable it to strengthen its market position and deliver greater value to its shareholders
and stakeholders (and) will continue to provide updates on further developments in due course,” it added.
As at Jan 10, 2024, at 12.30pm, the share price of Magma stood at RM0.270, representing a market capitalisation of RM255.2 million.
