Paramount Corp group chief executive officer Jeffrey Chew Sun Teong
PETALING JAYA: Property developer Paramount Corp Bhd contends that the company has not been involved in any wrongdoing over the acquisition of a condominium property in which 70%-owned subsidiary, Tanah Bayumas Sdn Bhd (TBSB), together with Adam Primus Varghese Abdullah and Macpherson Simon of Adamprimus & Co (the receiver) and RHB Bank Bhd are being sued over.
Paramount announced to the stock exchange last Friday that TBSB and the others were named as defendants in a lawsuit by Prismaworld Embassyview Sdn Bhd (PESB), the owner of a leasehold condominium property under receivership located in the prestigious diplomatic enclave of Kuala Lumpur that TBSB signed a sale and purchase agreement (SPA) to acquire last December for RM145mil.
Paramount group chief executive officer Jeffrey Chew told StarBiz that the company purchased the asset through an open and transparent tender process.
“We are a bona fide buyer under a proper tender. This property was advertised by Adamprimus for sale via a tender in the newspapers. We submitted a bid and were successful in the tender,” he said, adding that the condominium was built and rented out to expatriates.
PESB seeks an injunction from the high court to block the transaction or, if the sale goes through, for the defendants to be jointly and severely liable to pay damages or loss in the sum of RM313.08mil to it.
As understood from the particulars of the writ of summon and statement of claim, PESB wants to stop the acquisition by Paramount as it wants to sell the condominium to Al Shamal LLC-FZ.
The hearing for the injunction application has been scheduled for May 20.
“We will respond to the writ of summons and will go through the appropriate legal channels.
“The matter is now before the courts and will be dealt with in accordance with due legal process,” Chew said.
He shared that TBSB was still awaiting approval for the sale transaction but noted that should the SPA not go through, Paramount has the right to walk away after six months.
“As buyer, we expect a clean title for transfer, which includes the removal of the injunction and writ,” Chew added.
Paramount said the writ of summon and statement of claim would not have any significant financial impact on the company and TBSB, as the vendor (Adamprimus as receiver) would refund all moneys paid by TBSB towards the purchase price together with 50% interest earned in the interest-bearing accounts held by the receivers and managers of the condominium property and the vendor’s solicitors.
