Perak Corp which was recently reported as having lost significant parcels of land due to unpaid quit rent has categorically called it false.
The state owned entity, said when the land confiscation occurred it had derecognised the assets and liabilities of PCB Development Sdn Bhd and its subsidiary, Animation Theme Park Sdn Bhd, from its consolidated financial statement. It added the derecognition was a result of its unit PCB Development undergoing Creditors’ Voluntary Winding Up, during which the
liquidators took over control of its business undertakings. Therefore, Perak Corp said the land confiscation had no impact on its financial position
Accordingly, the group also said the derecognition shielded it from any financial repercussions thus safeguarding the interests of all shareholders given PCB Development’s liabilities far exceeded its assets and is in an insolvency position. Perak Corp added that both schemes were duly approved by their respective scheme creditors during the adjourned meetings held on 19 April 2021 and sanctioned by the High Court on 7 May 2021 which was later announced to Bursa.
The group claimed its former CEO, Mohamed Shafeii Abdul Gaffoor, when Perak Corp had been declared insolvent, resulting it to fall into a Practice Note 17 position, the CEO sought to set aside the sanctioned scheme of arrangement, which aimed to restructure the outstanding financial obligations of these companies.
However, the High Court of Ipoh later ruled that the allegations in support of the Originating Summons filed by Mohamed Shafeii Abdul Gaffoor were not supported by any contemporaneous evidence. Consequently, the court deemed Mohamed Shafeii’s action through the Originating Summons as frivolous, scandalous, vexatious, and amounted to an abuse of the Court’s process.
Perak Corp said the ruling rhad eaffirmed that the claims were unfounded, intended to mislead, and create unwarranted suspicion.
