Claims against XDL unit with­drawn

Sports shoe­maker says le­gal cases have been closed

The Star Malaysia - StarBiz - - News -

PETALING JAYA: Four claims made against a sub­sidiary of Xide­lang Hold­ings Ltd (XDL) in China have been with­drawn and the cases have been closed, the group says.

A sep­a­rate claim, made by XDL’s unit against an­other party, has also been with­drawn, it said.

In a fil­ing with Bursa Malaysia, XDL said it had been made aware from the China Judge­ment On­line web­site that there were sev­eral lit­i­ga­tion mat­ters in­volv­ing its unit Fu­jian Prov­ince Jin­jiang City Chendai HongPeng Footwear Man­u­fac­tur­ing Co Ltd (HongPeng Footwear).

HongPeng Footwear is a wholly owned sub­sidiary of XDL, which was in­cor­po­rated in China, and is prin­ci­pally en­gaged in the de­sign, man­u­fac­tur­ing and mar­ket­ing of sports shoes.

It con­trib­uted about 83.9% of the com­pany’s pre-tax profit on a con­sol­i­dated ba­sis in the fi­nan­cial year ended Dec 31, 2017.

The case filed by XDL’s unit, on April 19, 2016, was to claim com­pen­sa­tion fol­low­ing the de­fen­dant’s fail­ure to va­cate a par­cel of land be­long­ing to HongPeng Footwear.

Fol­low­ing set­tle­ment ne­go­ti­a­tions, the group said the de­fen­dant agreed to va­cate and re­turn the land to HongPeng Footwear and bear all the le­gal costs in­curred by the unit.

The other four claims, against HongPeng Footwear and other par­ties, were filed by the China Con­struc­tion Bank Corp Jin­jiang Branch – and later with­drawn.

The group told Bursa Malaysia that the claim filed by its unit was “not ma­te­rial to the group” as it arose from the or­di­nary course of busi­ness.

The other cases, it said, would not have any ma­te­rial and ad­verse ef­fect on its fi­nan­cial po­si­tion.

At last look, shares in XDL traded un­changed at 12 sen.

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