SINGAPORE - Catalist-listed KLW Holdings expects to recover an initial amount of $1 million on Monday (Dec 3), in ongoing legal proceedings to recover commitment fees from unauthorised term sheets that were entered into by KLW's former managing director in 2014.
The investment holding and door manufacturing company is claiming a total of about $7.8 million from Chan Ewe Teik Michael and his company Straitsworld Advisory Limited, for legal costs and the commitment fees paid under the term sheet for a property development project in Zhangye Gansu, China.
In a Singapore Exchange filing on Monday, KLW said Mr Chan had appealed against a bankruptcy order filed against him by KLW in February to recover the payments. The Singapore High Court on Sept 3 granted a stay until a further hearing in March 2019, on the condition that Mr Chan pay KLW $2.5 million by Dec 3 and the balance of $5.3 million by March 4, 2019.
On Nov 29, Mr Chan proposed to split the payments into $1 million to be paid by Dec 3, $1.5 million by Jan 3 and the balance of $5.3 million by April 7. KLW said it has accepted Mr Chan's proposal offer and is awaiting the first payment on Monday.
KLW shares closed at 0.5 cent on Friday, up 0.1 cent.