London Biscuits falls 5.88% on being served writ of summons

KUALA LUMPUR (Jan 8): Shares in London Biscuits Bhd fell 5.88% this morning after it was 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.

At 9.18am, London Biscuits fell 0.5 sen to 8 sen, valuing it at RM23.26 million.

"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.