Posted by Jimmy Song > 2013-04-23 22:55 | Report Abuse

http://www.thesundaily.my/news/678170 PETALING JAYA (April 24, 2013): KNM Group Bhd's subsidiary KNM Process Systems Sdn Bhd (KNMPS) has filed an injunction to restrain Mission Biofuels Sdn Bhd – a subsidiary of Australia-based Mission NewEnergy Ltd – from proceeding further with a winding-up petition served to KNMPS and will be applying to strike out the petition as, among other things, an abuse of process. In a statement yesterday, KNM said there is no impact to the group arising from the petition, which claims that KNMPS owes Mission Biofuels RM12.2 million together with interest. for not fulfilling its contractual obligations under an engineering, procurement, construction and commissioning (EPCC) contract dated July 25, 2007 with the project completed back in 2010. "In regards to Mission Biofuels claiming that they have submitted invoices and letter of demand, they selectively failed to disclose that all invoices were rejected and the letter of demand had been denied by KNM's solicitors. "Therefore, the petition served against KNMPS is nothing, but exasperating and retaliatory in nature," KNM said. The petition is served following KNMPS previous filed proceedings against Mission Biofuels on Oct 25, 2012 and a winding-up petition based on insolvency served to Mission Biofuels on Nov 9, 2012. KNMPS previously filed proceedings against Mission Biofuel for outstanding payment due to KNMPS totalling RM49.9 million, being the payments due and owing to KNMPS by Mission Biofuels for the works fully carried out under the EPCC contract. The hearing in respect of the filed proceedings resulted with a court order that Mission Biofuels was to deposit a sum of A$4 million (RM12.51 million) pending resolutions of KNMPS's claim via arbitration. Noting on various potential issues, KNMPS served a winding-up petition to Mission Biofuels, but the court had on March 12, 2013 dismissed KNMPS's petition. KNMPS has appealed to the Court of Appeal against this decision. "KNM's legal advisers are of the opinion that Mission Biofuels action in filing the said petition is not only frivolous and vexatious, but is also tainted with malicious intent and a clear and blatant abuse of process." Shares of KNM fell 2 sen or 4.21% at 45.5 sen, with 11.87 million shares traded. Advice please?