Knm Sues Japan’s Ngk Over Failed German Unit Sale

SHAH ALAM: Equipment manufacturer KNM Group Bhd and its subsidiary, KNM Process Systems Sdn Bhd, have filed a lawsuit against a Japanese company and two of its senior executives over the failed disposal of Deutsche KNM GmbH (DKNM).

DKNM is the group’s German subsidiary.

In the suit filed at the High Court here yesterday, KNM said the transaction was critical to its debt-restructuring efforts, as the proceeds were intended to address about RM1.37 billion in combined indebtedness.

KNM named Japan’s NGK Insulators Ltd as well as Takashi Yamada and Yasushi Morinaga as defendants.

The group also said it took various steps to facilitate the deal, including withdrawing a regulatory appeal and delisting from Bursa Malaysia on Nov 5 last year.

The proposed sale was a central component of the group’s court-supervised restructuring plan.

According to the statement of claim, KNM alleges that NGK and its executives later raised additional requirements before the Nov 26, 2025 long-stop date, including requests for future financial projections for the 2026 to 2028 financial years.

The group says these additional requests prevented the transaction from being completed.

KNM also alleges that NGK and its two executives engaged in tortious conduct that frustrated the transaction and its restructuring efforts, including unlawful interference with trade and business, inducement of breach of contract, and conspiracy to injure the company.

The lawsuit, filed after NGK failed to comply with the letter of demand, seeks damages amounting to RM364 million for alleged loss of listed-company value and market capitalisation following the delisting.

KNM is also seeking damages amounting to 46.5 million euros over alleged exposure to enforcement action by German lenders, and RM42.69 million in transactions and costs.