GLOVE maker WRP Asia Pacific Sdn Bhd has drawn up a detailed plan for the reorganisation of the company to revive its operations and return it to profitability, said its lawyers today. 

Thomas Philip Advocates and Solicitors said the company’s board of directors was also taking legal action against the previous management, led by the then-chief executive officer Lee Son Hong for alleged mismanagement.

The lawyers added that the board had arranged an injection by shareholders to pay salaries for employees and workers.

“The new board of directors recognises the potential of the global glove market and the importance of setting WRP Asia Pacific on the right course. 

“It has drawn up a detailed plan for the reorganisation of the company to revive its operations and return it to profitability. 

“Additionally, the new board has offered a turnaround team to assist the interim liquidators to unfurl WRP Asia Pacific’s full potential,” said Mathew Thomas Philip in a statement. 

The statement comes following news reports yesterday that WRP Asia Pacific has suspended its business operations with immediate effect due to financial constraints.

The suspension comes three months after the company was banned by US Customs and Border Protection (CBP) agency on suspicion of using forced labour.

The circular, dated December 30, stated that: “Please take note that due to financial constraints faced by the company, the business operations of the company will be suspended immediately until further notice.” 

It is credited to interim liquidators Ong Hock An and Mak Chew Yin. 

On its website, WRP Asia Pacific claims to be a world leading manufacturer and exporter of premium quality glove products. 

Mathew said in the statement today that the company was mismanaged by the previous CEO Lee, who refused to account to the board as to WRP Asia Pacific’s state of affairs.

“With scant regard to the company or its employees, on June 17, 2019, Dato’ Lee conspired to wind up the company and there is presently an action in court for conspiracy to injure.”

He added that the board has also filed an action against Lee for criminal breach of trust involving RM8.4 million. 

The board had removed Lee as the managing director and CEO on November 20 last year. It had then appointed Thomas Philip to carry out due diligence.

The law firm also said that the board has arranged for an emergency shareholders’ injection by TAEL Partners, a private equity fund, of RM3.25 million today to enable the interim liquidators to pay salaries to workers and executives during the temporary suspension of business operations. 

“Today we are pleased that we have transferred funds for the salaries of employees who were short-changed by the previous management. 

“We are working closely with the board of directors, interim liquidators, employees and all other stakeholders involved to revive the company to its full potential,” Mathew added. – January 2, 2020.