CATALIST-LISTED AGV Group's indirect subsidiary AGV Galvanizing has received a letter of demand for a sum of RM1.6 million (S$517,900) from RHB Bank, AGV Group announced in a bourse filing on Friday (Dec 17).

The letter of demand claimed that AGV Galvanizing had breached the terms and conditions of a contract and that it had failed to pay RHB Bank the sum due under the hire purchase facilities granted by the bank. Because of the default and breach in contract, the facilities were recalled and terminated.

AGV Group disclosed that the bank had demanded the sum, together with interest and legal fees, to be paid within 21 days from Dec 13. AGV Galvanizing also has to immediately return to the bank equipment including a galvanising furnace system and rectangular mild steel water tanks.

If the company fails to do so, RHB Bank will commence legal proceedings against AGV Galvanizing.

AGV Group is currently seeking legal advice on its position, it said in the Singapore Exchange filing.

The company had voluntarily suspended trading of its shares on Nov 24.

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