Investors should be forewarned that SILK / Sunway Infrastructure
Berhad is being sued by affected residents of Sg Chua and the outcome
of the suits would have material effect on the SILK project
Media Statement
by Ronnie Liu Tian Khiew
(Petaling Jaya,
Thursday):
In the Prospectus dated 13 November 2003 published today, Sunway
Infrastructure Berhad (Company No. 405897-V) has made the following
claim under the heading 1.7 Material Litigation, Capital Commitments,
Contingent Liabilities and Borrowings:
"1.7 Material Litigation
Saved as disclosed in Section 20.4.6 and 20.4.7 of this Prospectus,
as at 7 November 2003(being the latest practicable date prior to the
issuance of this Prospectus), neither the Company nor its subsidiary
companies are engaged in any material litigation, claims or
arbitration, either as plaintiff or defendant, or any material claim
against the Company or its subsidiary companies, or material
arbitration proceeding which has a material effect on the business
or financial position of the Company or its subsidiary companies and
the Directors do not know of any proceeding pending or threatened or
of any fact likely to give rise to any proceeding which might
materially affect the business or financial position of the Company
or the subsidiary companies."
I like to bring the attention of investors to the disclosed note
20.4.7 in the Prospectus, where Tan Yoke Kwee and 19 others filed an
action in the High Court of Malaya at Shah Alam. (Originating Summons
No MT3-21-164-2003) in late August 2003.
Tan and 19 others as plaintiffs have sued 1. Sistem Lingkaran Leburaya
Kajang Sdn Bhd, 2. Sunway Holdings Inc Bhd, 3. Sunway Construction Bhd
and 4. Pengarah Tanah dan Galian Negeri Selangor Darul Ehsan as
defendents 1,2,3 and 4 respectively.
{Sistem Lingkaran Leburaya Kajang Sdn Bhd (SILK) is a subsidiary
company of Sunway Infrastructure Berhad ( SUNSILK)}
The case is still pending in Shah Alam High Court and in fact, SILK
and other defendants will be cited for contempt on 18 November 2003
following the demolition of 15 houses owned by the plaintiffs
without a court order on 11 November 2003 morning by SILK and the
land office, with the assistance of the FRU.
Please to notified that on Monday, 10 November 2003, the plaintiffs
have filed a notice of appeal to the Court of Appeal. Further on 13
November 2003, the plaintiffs have filed an application for stay,
which will be heard on 18 November 2003. The demolition taken by
SILK and land office on 11 November 2003 may affect heavy damages
and claims on the Sunway group of companies.
The plaintiffs are claiming RM350, 000 each as rightful compensation
from the four defendants. I believe in any event, the outcome of
these suits will inevitably has a material effect on the business or
financial position of the Company and subsidiary companies.
I would also like to highlight the fact that SUNSILK has undertaken
to indemnify the Government from all actions, suits, claims,
demands, proceedings, losses, damages, compensation, costs
(including solicitor and client costs), charges and expenses. (Refer
to clause 21 of the Prospectus for details). If Tan and 19 others
succeed in the suit against the fourth defendant, the claims and
costs involved would have to be borne by SILK.
(13/11/2003)
* Ronnie Liu Tian Khiew, DAP national publicity
secretary and Selangor chairman
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