Hong Leong Finance wins RM445mil loan repayment suit

(The Star) – Hong Leong Finance Bhd (HLFB) won a lawsuit against businessman Low Thiam Hoe and loan borrower Mekuritek Sdn Bhd over the repayment of RM445mil syndicated loans.

In 1998, HLFB filed a suit against Low for RM28.6mil for allegedly failing to repay a loan.

In 1999, he filed a counter-claim against HLFB, HLG Capital Markets Sdn Bhd and former Hong Leong Credit Bhd CEO Seow Lun Hoo, asking for damages for alleged wrongful or negligent advice.

HLFB, in turn, filed another suit against Mekuritek and three guarantors Hussin Abdul Karim, Agus Salim and Abdullah Abd Karim Bajerai for a similar claim of RM28mil.

Low claimed a loan agreement was entered by him as part of a larger transaction by the lenders the syndicate of bankers and financiers to finance the majority shareholders of Arus Murni Corporation Bhd, which owns finance company Kewangan Bersatu Bhd.

The case saw Opposition leader Datuk Seri Anwar Ibrahim and Hong Leong Finance Bhd chairman Tan Sri Quek Leng Chan being subpoenaed to testify.

However, the court allowed Hong Leong to set aside the subpoenaes and held that both were not material witnesses and would not help in establishing evidence relevant for the case.