Categories: BusinessNews

EXIM Bank sues Power Root for RM7.4m over alleged loan default

EXPORT-IMPORT Bank of Malaysia Bhd (EXIM Bank) has filed a lawsuit against instant coffee manufacturer Power Root Bhd, seeking RM7.39 million over an alleged loan default.

The bank demands repayment of RM675,509.22 for funds disbursed to Power Root’s subsidiaries and an additional RM6.72 million related to another loan agreement from 2012.

EXIM Bank is also claiming general, exemplary, and punitive damages, interest, and legal costs.

Power Root denies all allegations and maintains that its subsidiaries have strong grounds to contest the claims, citing insurance claims under the Comprehensive Policies.

The company argues that the rights over the outstanding debts, which form the basis of the insurance claims, have already been assigned to EXIM Bank, and any recovery of those debts falls solely with the bank.

The case is scheduled for e-Review on February 3, and Power Root stated the claims are not expected to impact its financial year ending March 31, 2025. — TMR

Zukri

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