KNM files “winding up” petition against Mission Biofuels

KNM Process Systems Sdn Bhd, a wholly owned subsidiary of KNM Group Berhad, 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. According to Carter Clark Financial Recovery, a “winding- up” petition is a plea usually presented to the court by a creditor asking that a company be put into compulsory liquidation.
KNMPS asserts that Mission Biofuels owes KNMPS more than US$16.5 million for equipment used and services rendered as the contractor for Mission Biofuels’ second biodiesel process facility, as well as the balance it owes on a plant in Kuantan Port, Malaysia.
According to Mission Biofuels, because the dispute is already in arbitration with no award, its solicitors have found the petition to be “defective, frivolous, vexatious, malicious and an abuse of the court process…” Mission Biofuels said the engineering, procurement and construction (EPC) contract stipulates that arbitration is the recognized solution in settling disputes. (January 17, 2013)