KNM petitions court to liquidate Mission Bio over disputed debt
KNM Process Systems filed a “winding-up” petition in the Shah Alam High Court in Malaysia against Mission Biofuels, a wholly owned subsidiary of Australia-based Mission NewEnergy Ltd. A winding-up petition, according to Carter Clark Financial Recovery, is a petition presented to the court, typically by a creditor, seeking an order that a company be put into compulsory liquidation.
According to KNMPS, Mission Biofuels is indebted to KNMPS for, among other things, a sum of more than USD$16.5 million for equipment and services as contractor for Mission Biofuels’ second 75 MMgy biodiesel process facility that features continuous acid conditioning, silica pretreatment, free fatty acid pretreatment and technical-grade glycerin refining; in addition to the balance owed on a plant in Kuantan Port, Malaysia.
In public documents filed with the U.S. Securities and Exchange Commission, Mission stated that the amount KNMPS claims it is owed by Mission is under dispute, and that its solicitors have advised that the petition is “defective, frivolous, vexatious, malicious and an abuse of the court process…” since the dispute is already in arbitration with no award. Per the EPC contract between Mission and KNMPS, arbitration is the recognized solution in settling disputes and, therefore, this should not be circumvented, stated Mission.
Executive chairman of KNMPS parent company KNM Group Ir Lee Swee Eng owns a major shareholding interest in Mission NewEnergy Ltd.