OTHERS CENTURY LOGISTICS HOLDINGS BERHAD ("CENTURY" OR "COMPANY") - WRIT OF SUMMONS TOGETHER WITH THE STATEMENT OF CLAIM SERVED ON CENTURY TOTAL LOGISTICS SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY
CENTURY LOGISTICS HOLDINGS BERHAD |
Type | Announcement |
Subject | OTHERS |
Description | CENTURY LOGISTICS HOLDINGS BERHAD ("CENTURY" OR "COMPANY") - WRIT OF SUMMONS TOGETHER WITH THE STATEMENT OF CLAIM SERVED ON CENTURY TOTAL LOGISTICS SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY |
Reference is made to the announcements released on 6 August 2015 and 11 August 2015 by Century. Details of the claim and circumstances leading to filing of the Writ of Summons by Nestle against CTL The Plaintiff alleges that it had engaged CTL as its logistics and supply chain service provider and that CTL had failed and/or neglected to exercise due care, diligence and skill in undertaking its scope of work for outbound logistics services as set out in Nestle’s request for quotation. The Plaintiff alleges that as a result of the alleged failure and/or breach, it had suffered losses totaling RM 21,649,381.64. The particulars of the claim are as follows: i. Air Freight costs RM5,584,049.00 ii. Detention, demurrage & other related costs RM8,847,069.32 iii. Nestle staff mobilisation costs RM2,707,151.00 iv. Stock write off/Goods destroyed RM4,511,112.32 ------------------------ Total RM21,649,381.64 ============== The Plaintiff seeks against CTL the following: (a) The sum of RM21,649,381.64; (b) In addition to and/or in the alternative to (a) above, CTL do pay the Plaintiff general damages to be assessed by the Court; (c) Interest on the sums adjudged to be payable by the Defendant to the Plaintiff at the rate of 5% per annum from the date of the filing of the Writ of Summons to the date of full payment; (d) Costs; and (e) Such further or other relief as the Court may deem fit and proper to grant. The Company and CTL’s position are that the Plaintiff’s case is baseless and unsubstantiated. CTL will be contesting the claim. The Court has fixed the case management at 9.00 am on 27 October 2015. Financial and Operational Impacts In the unlikely event that Nestle's demand materialise, the claim sum of RM21,649,381.64 amounts to approximately 8.0% of the net assets of the Century Group as at 31 December 2014. There will not be any material operational impact of the claim on the Century Group.
Meanwhile, CTL has filed 4 claims respectively against Nestle, Nestlé Manufacturing (Malaysia) Sdn Bhd, Nestlé Asean (Malaysia) Sdn Bhd and Cereal Partners (Malaysia) Sdn Bhd for outstanding sums totaling RM 853,997.95 being amount payable for services rendered for interim assignments that had been undertaken by CTL. Further, CTL has also filed an additional claim against Nestle for the sum of RM8,443,384.75, being damages and loss of profit resulting from misrepresentation by Nestle. The Company will be making further announcements as and when necessary. This announcement is dated 16 October 2015. |
Announcement Info
Company Name | CENTURY LOGISTICS HOLDINGS BERHAD |
Stock Name | CENTURY |
Date Announced | 16 Oct 2015 |
Category | General Announcement for PLC |
Reference Number | GA1-16102015-00035 |