TXCD Bhd has maintained that a newly filed lawsuit by LKD Trading Sdn Bhd (in liquidation) is not expected to have a material impact on the group’s financial position, describing the latest action as substantially similar to an earlier case that was struck out by the High Court.
In a filing with Bursa Malaysia, TXCD said the litigation involves two related court proceedings initiated by LKD Trading.
The first case, was filed on Oct 3, 2025, by LKD’s liquidator against TXCD and two other defendants.
TXCD subsequently applied to strike out the suit on Nov 13, 2025. On May 21, 2026, the High Court ruled in favour of the company and struck out the case, awarding TXCD costs of RM20,000, subject to allocator’s fees.
However, on June 29, 2026, LKD commenced a fresh legal action, Civil Suit against TXCD and the same two individual defendants.
According to the company, the new suit is substantially identical to the earlier proceedings, with the primary difference being that the latest action has now been initiated in the name of LKD itself rather than by its liquidator.
Under Suit 568, LKD is seeking several declarations and monetary claims, including a declaration that the two individual defendants had allegedly carried on LKD’s business with intent to defraud creditors under Section 540 of the Companies Act 2016.
The suit also seeks payment of RM8.18 million, representing monies allegedly owed by Prinsiptek (M) Sdn Bhd to LKD, together with interest at 5% per annum from July 1, 2019.
In addition, LKD is claiming RM378,160.59, alleging that withdrawals from the company’s bank accounts between May 21, 2019 and Sept 23, 2020 were null and void, as well as interest on the amount from Sept 23, 2020 until full settlement.
The total monetary claims exceed RM8.56 million, excluding interest.
Despite the renewed legal proceedings, TXCD said it believes it has a strong defence and remains confident of a favourable outcome.
