KUALA LUMPUR (Dec 21): Protasco Bhd has initiated bankruptcy proceedings against former director Datuk Tey Por Yee and his associate Datuk Ooi Kock Aun, demanding a total sum of RM123.37 million from each of them.

This move followed a ruling by the Kuala Lumpur High Court on Aug 30, which ordered Tey and Ooi to pay the company RM84.64 million for breach of fiduciary and statutory duties related to a 2014 sale and purchase agreement. Subsequently, their motion to stay the execution of the judgement was dismissed on Nov 22.

"Respective sealed bankruptcy notices were extracted on Dec 21, 2023," read Protasco's bourse filing.

The Shah Alam High Court has scheduled case management for Tey on March 12, 2024, and for Ooi on March 13.

On Sept 22, 2014, Protasco filed a lawsuit against Tey and Ooi for US$27 million (RM88.41 million then), citing breach of fiduciary and statutory duties after the company's failed attempt to acquire a 63% stake in PT Anglo Slavic Indonesia (PT ASI) for US$22 million.

Protasco alleged that Tey and Ooi failed to disclose their interest in the transaction, engaged in a conspiracy to defraud the company, and undertook secret profit-making.

The initial agreement with PT Anglo Slavic Utama (PT ASU) was made in December 2012 to acquire a 76% equity interest in PT ASI for US$55 million. However, the deal was downsized to acquire a 63% stake in PT ASI for US$22 million after due diligence.

The deal eventually lapsed due to PT ASU's inability to meet conditions, despite Protasco having paid the total US$22 million consideration plus an additional US$5 million advance.

It is worth noting that the protracted lawsuit resulted in Tey and Ooi being granted a discharge not amounting to an acquittal by the Sessions Court in Kajang in September 2017.

Shares in Prostaco finished unchanged at 22 sen on Thursday, giving the group a market capitalisation of RM104.09 million.

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