Khee San Bhd and its major subsidiary Khee San Food Industries Sdn Bhd (KFI) have been served with a lawsuit by Tunai Impian Enterprise Sdn Bhd involving an RM18 million loan and a disputed land sale-and-leaseback arrangement.
The group said it and KFI were served with a Writ of Summons and Statement of Claim on Sept 4, 2026.
Several current and former directors and officers, including the personal representatives of a deceased director, have also been named as defendants in the suit.
Tunai Impian is seeking, among other relief, specific performance requiring KFI to execute a sale and purchase agreement and a tenancy agreement relating to the disputed lands.
Alternatively, the plaintiff is seeking payment from the defendants jointly or severally for several amounts, taking into account 91.8 million Khee San shares previously offered to Tunai Impian under Scheme E of schemes of arrangement approved in December 2022.
The claims include RM40 million for alleged deprivation of the disputed lands, as well as 24 months of rental at RM300,000 per month, equivalent to RM7.2 million.
Tunai Impian is also claiming the RM18 million principal loan amount, RM540,000 in outstanding interest and interest of 8% per annum from the date of default in repayment of the instalment.
Based on the amounts specified in the filing, the principal monetary claims before the additional 8% interest total RM65.74 million, although the ultimate amount and liability remain subject to the court proceedings and the relief granted, if any.
Khee San said the dispute originated from a moneylending agreement dated March 13, 2019, under which KFI borrowed RM18 million from Tunai Impian.
Khee San said it does not expect the litigation to have an immediate financial impact on its earnings and net assets, apart from professional costs, at this stage.
The confectionery company also said it does not expect any material operational impact arising from the suit.
