UK court rejects M'sian tycoon's cash-flow claim
Published on: Friday, March 06, 2015
Kuala Lumpur: Billionaire Tan Sri Khoo Kay Peng, the 44th richest in Malaysia, has claimed that he is struggling to pay a monthly maintenance of £110,000 (RM614,000) to his estranged wife, citing "cash-flow" problems. UK paper The Telegraph reported yesterday London's Civil Appeal Court judge Lord Justice McFarlane as saying that he was not convinced by Khoo's claim and warned the Laura Ashley boss that his appeal against the British court decision, which had ruled that his divorce from Pauline Chai should be heard in the UK, would be automatically "dismissed" if Khoo failed to pay the monthly maintenance. "It's very hard to see how someone with the apparent wealth of your client has a cash-flow difficulty," McFarlane was quoted telling Khoo's lawyer, Timothy Scott QC.
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"The time has come to be absolutely plain in dealing with him, in that those sums need to be paid and they need to be paid on time," the judge added. Chai's lawyer Richard Todd QC reportedly said Khoo has not voluntarily paid a penny of a UK court order made earlier this year for the tycoon to pay Chai £110,000 a month to cover maintenance and legal fees while the divorce case is going on. The lawyer also reportedly argued that Khoo has continued to enjoy an "extravagant lifestyle", while Chai has been excluded from the couple's former "fabulous life". London High Court judge Justice Bodey ruled last October that Khoo and Chai's billion-ringgit divorce dispute should be heard in the UK. The Kuala Lumpur High Court, however, contradicted that ruling and decided last November that it has jurisdiction to hear their acrimonious divorce.
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Former Miss Malaysia Chai, 68, is seeking for the dispute to be decided by the English courts where she stands to gain up to half of Khoo's estimated £400 million fortune, possibly the largest divorce settlement in British history. Khoo, 76-year-old chairman of international fashion and interiors brand Laura Ashley, is applying to have the case heard in Malaysia, arguing that they were married in Malaysia where he also maintains his official residence.
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Khoo would risk losing less of his wealth if the trial is held here. According to Forbes Malaysia's 50 Richest ranking released last month, Khoo, a retail and hotel magnate ranked at the 44th spot, has a net worth of US$300 million. The Telegraph reported yesterday Khoo's lawyer Scott as saying that the cash for his client's monthly payments should be raised by allowing Khoo to borrow £2 million against the couple's Rossway Park Estate in Hertfordshire, UK, where Chai is residing. Stay up-to-date by following Daily Express’s Telegram channel.
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