Supplier granted court order to wind up London Biscuit’s unit that defaulted on RM5m loan

KUALA LUMPUR (Jan 15): The High Court has granted a winding-up order against London Biscuits Bhd's wholly-owned subsidiary Kinos Food Industries (M) Sdn Bhd for not being able to pay an RM5.003 million outstanding sum owed to Desa Potensi Sdn Bhd.

As such, Ling Sie Kiong of Messrs HC Advisory Sdn Bhd has been appointed as the liquidator of Kinos following the court order on Jan 14.

"Subsequent to the appointment of Ling Sie Kiong as liquidator, the company is currently assessing the situation," London Biscuits said in a bourse filing today.

"The company shall fully cooperate with the liquidator of KINOS to ensure the smooth running of the liquidation process," it added.

On Oct 4, 2019, London Biscuits announced it received a winding-up petition by Desa Potensi for the sum due by Kinos for the supply and delivery of goods.

Desa Potensi was claiming for RM5.003 million in unpaid invoices issued during the period from April 5 to June 21, 2019.

It is worth noting that a separate petition was served on London Biscuits by Desa Potensi on Sept 18, 2019, demanding the outstanding payment of RM16.41 million, being unpaid invoices owed by London Biscuits during the period from April 1 to June 30 last year.

It was also announced yesterday that trading of shares in London Biscuits Bhd will be suspended  next Tuesday, until further notice.

Shares of London Biscuits closed at 2.5 sen, down one sen today, giving it a market capitalisation of RM7.27 million.