Aspen Group 1F3 has announced that it has initiated legal proceedings against Tialoc Malaysia on Dec 27, after the company’s indirect subsidiary Aspen Glove received a writ of summons for an alleged outstanding sum of RM78.1 million ($22.4 million) plus financing charges from Tialoc in August.
On Oct 16, Aspen issued a notice of demand to Tialoc to unequivocally deny its claims. Claiming that the suit was a case of abuse of process, Aspen demanded that Tialoc withdraw the suit on the grounds that it is “wholly unjust” and “highly defamatory”.
Tialoc had not withdrawn the suit when Aspen filed its counterclaim with the High Court of Malaya in Penang, Malaysia. Aspen is seeking a declaration that the suit by Tialoc is a “collateral abuse of court process”, an order that Tialoc pay the company the sum of RM41.4 million for losses caused by the suit filed by Tialoc, as well as general damages to be assessed.
Aspen is also seeking aggravated and exemplary damages to be assessed and the repayment of legal costs it has incurred in defending the suit filed by Tialoc.
The company will make further announcements when there are updates to the proceedings.
Shares in Aspen closed 0.1 cents up or 5% higher at 2.1 cents on Dec 27.
