London Biscuits served writ for default in payment of RM1.256m

KUALA LUMPUR (Jan 7): London Biscuits Bhd has been served with a writ of summons and a statement of claim from PAC Lease Bhd for defaulting in payment obligations amounting to RM1.256 million.

In a filing with Bursa Malaysia today, London Biscuits said it received a copy of the writ of summons, together with the statement of claim on Jan 6 filed by Messrs C. L. Boo & Associates, the solicitors for PAC Lease.

"The suit was filed on the basis that Kinos (Kinos Food Industries (M) Sdn Bhd), the wholly-owned subsidiary of London Biscuits, has defaulted in its payment obligations to PAC Lease. Consequently, London Biscuit as the corporate guarantor of Kinos was also unable to meet its payment obligations to pay PAC Lease," it said.

PAC Lease's claim against London Biscuits and Kinos include the total sum of RM1.256 million, and interest on the said total sum of RM1.210 million at the rate of 2% per month, additional to the daily base rate from Dec 4, 2019 until the date of full settlement.

The claim also includes costs and such further or other relief as the High Court deems fit and proper to grant.

London Biscuits said subsequent to the appointment of a person named Lim San Peen as interim liquidator, the company is currently assessing the situation.

"LBB will make further announcements, as and when there are any material developments on the above matter," it added.

Shares of London Biscuits closed unchanged today at 8.5 sen, for a market capitalisation of RM24.72 million.