Public Bank drops lawsuit against Magma Group

KUALA LUMPUR: Magma Group Bhd has announced that the court had granted permission for Public Bank Bhd to withdraw suit against the defendants, which includes its wholly-owned subsidiary, Astaka Mekar Sdn Bhd.

“This withdrawal is executed with the liberty to file afresh and without any order as to costs, marking a pivotal moment for the company,” Magma said in a statement.

The suit, originally filed by Public Bank against Magma’s subsidiaries and associated parties, stemmed from disputes regarding the settlement of outstanding sums under various term loan facilities and overdraft facilities.

The plaintiff had sought substantial repayments, including accrued interest, from the defendants under these facilities.

“In the positive turn of events, the court had allowed for a withdrawal of the suit, signals a hopeful stride for Magma. It offers an avenue for the company to recalibrate its focus and strategies for future opportunities, untethered from the constraints of this protracted legal battle,” it said.

Managing director Datuk Seri Thomas Liang Chee Fong said the decision marked a “watershed moment” for Magma, allowing it to start afresh, leaving behind the challenges the company faced in the legal arena.

“Our focus now shifts to harnessing new opportunities and reinforcing our commitment to sustainable business growth. We are optimistic about the future and are poised to explore new avenues that align with our strategic objectives.”

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