KUALA LUMPUR (Yosefardi) – Synergy Berhad reported its indirect subsidiary PT Diwangkara Holiday Villa Bali is sued by PT Diwangkara Jaya Makmur.

The Plaintiff’s claims principally include the following;

1. seizure (Conservatoir Beslag) of the land held under Title No. 419/Sanur Kaja situated at Bali Province, Denpasar City, Sub-District of South Denpasar, Sanur Kaja Village with an area of 5,050 metres square, registered in the name of the deceased Ida Ayu Sutiti Wirati alias Ida Penanda;

2. invalidate the lease agreement (Deed No. 39) dated 31 July 2003 between Defendant I and Defendant II for Defendant I to operate and manage Diwangkara Hotel erected on the aforesaid land for a period of 22 years;

3. declaration that the Plaintiff reserves the right to perform management of Diwangkara Hotel owned by the Plaintiff erected on the aforesaid land;

4. order for Defendant I to hand over Diwangkara Hotel to the Plaintiff in good condition;

5. order for Defendant I to pay actual losses that have been suffered by the Plaintiff amounting to Rp104,600,000,000 (equivalent to approximately RM31.17 million), general losses which have been suffered by the Plaintiff amounting to Rp10,000,000,000 (equivalent to approximately RM2.98 million) and default penalty of Rp10,000,000 (equivalent to approximately RM2,980) for each day commencing from the pronounce of the judgement;

6.court fees; and

7. implementation of the judgement on the claims despite any efforts of protest or appeal.

If the claim is successful, the expected losses are the amount claimed, legal costs and assets to be written off amounting to about RM1.7 million as at 31 December 2014.

However, the Group (Synergy Berhad) is not expected to suffer a material adverse operational impact following the purported termination of the aforesaid lease.