PETALING JAYA: Glomac Bhd’s wholly-owned subsidiary Glomac Alliance Sdn Bhd (GASB) has been served with an amended writ and statement of claim by Score Option Sdn Bhd (SOSB) claiming over RM154.8 million in damages over the proposed residential development of 90 acres of land in Puchong, Selangor.
In 2011, similar issues were brought up in a civil suit, which was struck off by the High Court and Court Of Appeal. Glomac said the plaintiff and its directors were declared insolvent.
In 2003, Glomac signed a joint venture agreement with Score Option to develop 90 acres in Puchong into 1,000 double-storey terraced houses for launch in early 2004. The project was to have had a gross development value of RM250 million.
A dispute between the two companies, however, led to the matter being brought to court. GASB managed to get a court order to compel SOSB to sell the land to GASB at RM77 million as per the joint venture agreement and restrain SOSB from interfering in its development plans.
GASB received the legal documents, dated Aug 10, 2017 from Score Option, claiming for a compensation sum of RM107.8 million for the loss of land; unspecified amount of loss of expenses of the project; and 22% of the gross development value (GDV) of the project or a minimum of RM47 million, whichever is higher.
The suit was based on the joint venture agreement dated Jan 17, 2003 between Score Option and GASB for the project in Puchong.
“The financial and operational impact of the pending litigation on the group is dependent on the outcome. The expected losses, if any, arising from this case is RM154.8 million, or more,” Glomac said in a stock exchange filing.
GASB will file a memorandum of appearance in due course and have its solicitor apply to strike out the suit. Case management is on Monday.
Glomac closed unchanged at 67 sen yesterday, with some 204,200 shares traded. Trading in its shares was halted for about 1½ hours in the morning session.
Source: The Sun Daily