Shahriman's objections delayed Sapura honouring cash call, trial hears
KUALA LUMPUR : Sapura Holdings Sdn Bhd director Shahriman Shamsuddin was told in court today that his objections resulted in a 16-month delay in Sapura Resources Bhd (SRB) meeting a RM40 million cash call for the development of an office tower.
During cross-examination, lawyer S Rabindra, representing elder brother Shahril Shamsuddin, pointed out to Shahriman that Sapura Holdings, SRB's parent company, had made an offer of financial assistance on May 4, 2021.
He said the delay stemmed from Shahriman's objection to a proposal by Sapura Holdings that SRB's Sapura@Mines property be used as collateral for the financial assistance.
Shahriman agreed that several documents annexed to his petition reflected his concerns over SRB allowing the property to be used as security.
The property was eventually offered as collateral, along with two other land parcels in Jalan Tandang and Jalan 219 in Petaling Jaya.
In a letter dated Feb 28, 2023, Shahril informed SRB's board of directors that the RM40 million disbursement had been made, with the three parcels of land used as collateral.
Shahriman confirmed the letter and its contents in court. However, he refused to acknowledge that Shahril had used his best efforts to find a middle ground to avoid the consequences of a default.
He also agreed the financial assistance ensured SRB avoided defaulting on the RM40 million payment to Impian Bebas Sdn Bhd.
Impian Bebas is a joint venture between SRB and KLCC Holdings Sdn Bhd to develop Permata Sapura, a 52-storey tower in the KL city centre and flagship building of Sapura Holdings.
Rabindra: With financial assistance on offer since May 2021, the payment was only made at the very last moment — on Sept 30, 2022. Do you agree?
Shahriman: I don't recall the exact date.
Rabindra: Do you agree that the payment avoided the default notice and its negative consequences?
Shahriman: It would have been negative if KLCC Holdings had taken action.
Shahriman is seeking to wind up Sapura Holdings, the parent entity of over 40 subsidiaries valued at RM832 million, including the publicly listed SRB.
Both Shahril and Shahriman hold a 48% stake each in Sapura Holdings, with the remaining 4% owned by Rameli Musa, who is also named as a respondent.
In the petition filed last September, Shahriman claims that an irreparable breakdown of mutual trust and confidence between him and Shahril necessitated the dissolution of Sapura Holdings.
However, Sapura Holdings, Shahril and Rameli are opposing the petition, contending that the company was never intended to be a family business and that dissolution would be neither just nor equitable.
The hearing continues before Justice Leong Wai Hong.
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