KNM said the civil suit stems from the terminated sale of Borsig to Vorsprung Industries GmbH in December 2022.
PETALING JAYA: KNM Group Bhd
, along with Deutche KNM GmbH and Borsig GmbH, has taken legal action against two former executives, Flavio Porro and Terence Tan Koon Ping.
In a filing with Bursa Malaysia, KNM said the civil suit stems from the terminated sale of Borsig to Vorsprung Industries GmbH in December 2022.
The plaintiffs are alleging that the defendants, as directors, had failed to obtain approval and had breached their duties, resulting in significant financial repercussions and a subsequent settlement with Vorsprung.
The legal action includes allegations of conspiracy, breach of loyalty, negligence and breach of statutory duties.
In response to the alleged breaches of duties, KNM and the other plaintiffs have filed a lawsuit demanding 3.44mil euros (RM17.2mil) from both of the former executives.
In the case of non-compliance with the above payment order, the plaintiffs are seeking an additional court order to trace and transfer all assets and properties of the defendants, regardless of location or nature, to the plaintiffs.
This is intended, among other purposes, to cover any losses or damages suffered by the plaintiffs.
KNM, which is a Practice Note 17 company, is in the midst of listing Borsig on the Singapore Exchange. However, it seeks to retain a 40% equity interest in Borsig.
Its current board is also looking at monetising several other assets, including FBM Hudson Italiana SpA and an ethanol plant in Thailand.
