Read this article in:
22 March, 2000In an update on the closure of Applied Magnetics in Malaysia, the prosecution is unable to issue arrest warrants concerning unpaid retrenchment benefits.
MALAYSIA: According to the Malaysian newspaper, The Sun, the managing director of Applied Magnetics (M) Sdn Bhd (AMM), an American-based company which shut down its operations in Penang this past January and failed to compensate its former employees, is believed to have fled the country. (See news item of Feb. 7 for background information.)
On February 3, a summons was served on the managing director, Joseph Tierney Phillips, for not paying approximately 1.9 million Malaysian ringgits (US$501,000) to the former 2,100 workforce. This meant he was barred from leaving Malaysia until the matter was resolved.
However, the prosecution is now unable to carry out the six arrest warrants issued by the court against Phillips because he has disappeared. Phillips submitted his resignation on February 25, effective February 28, the day he apparently boarded a flight to leave the country.
Attempts are now being made to sell some of AMM's machinery and finished products, whereupon proceeds could be used towards retrenchment benefits.
AMM, which was producing disk drives, depended totally on export sales to the parent company, Applied Magnetics Inc., in California; however, poor sales, strong competition and finally the parent company's bankruptcy brought on closure.
On February 3, a summons was served on the managing director, Joseph Tierney Phillips, for not paying approximately 1.9 million Malaysian ringgits (US$501,000) to the former 2,100 workforce. This meant he was barred from leaving Malaysia until the matter was resolved.
However, the prosecution is now unable to carry out the six arrest warrants issued by the court against Phillips because he has disappeared. Phillips submitted his resignation on February 25, effective February 28, the day he apparently boarded a flight to leave the country.
Attempts are now being made to sell some of AMM's machinery and finished products, whereupon proceeds could be used towards retrenchment benefits.
AMM, which was producing disk drives, depended totally on export sales to the parent company, Applied Magnetics Inc., in California; however, poor sales, strong competition and finally the parent company's bankruptcy brought on closure.