PETALING JAYA: Maxwell International Holdings Bhd, a Practice Note 17 (PN 17) company, has appointed Beijing Taojin Law Office, a legal firm in China, to conduct special legal due diligence on the litigations involving its subsidiaries.
In a filing with Bursa Malaysia today, Maxwell said the litigations involve its wholly owned subsidiary Jinjiang Zhenxing Shoes & Plastics Co Ltd (Zhenxing Shoes) and Hebi City Yifu Plastics Product Co Ltd, a wholly owned subsidiary of Zhenxing Shoes.
The appointment of Beijing Taojin Law Office is in addition to the earlier appointment of Messrs Dennis Nik & Wong, an independent external law firm in Malaysia.
To recap, Maxwell had on July 31, 2017 said in a filing with the stock exchange that it has been made aware of several cases against Zhenxing Shoes but was unable to confirm at that juncture.
The company appointed Messrs Dennis Nik & Wong to carry out a thorough review of the litigation cases, the liabilities and potential financial impact on Zhenxing Shoes as well as the proposed steps to be taken by Zhenxing Shoes.
Maxwell had said it would only be able to confirm and clarify the accuracy of the litigation matters upon the completion of the review by Messrs Dennis Nik & Wong and subsequent issuance of a legal opinion by the firm, which was expected to take two months.
The list of litigation cases against Zhenxing Shoes shared by Maxwell showed a total of 14 cases filed between Dec 29, 2016 and July 6, 2017 involving a total of 272.18 million yuan (RM177.73 million).
Maxwell said it will make further announcement in relation to the litigation cases upon the completion of the review of the litigation matters by Messrs Dennis Nik & Wong and Beijing Taojin Law Office.
Maxwell has until Jan 31, 2018 to submit its regularisation plan.
Its share price jumped 125% or 2.5 sen to close at 4.5 sen today with a total of 33.74 million shares traded, making it the ninth most actively traded stock today. Its market capitalisation stood at RM17.95 million.
Source: The Sun Daily