Yongnam hit with letter of demand over arrears totalling RM8.5m
Wong Pei Ting
MAINBOARD-LISTED steel fabricator Yongnam Holdings on Wednesday (Dec 28) received a letter of demand over RM8.5 million (S$2.6 million) in arrears owed to the trustee of Bursa-listed Axis Reit.
In a bourse filing on Thursday, the company said the arrears are rental, compensation charges and legal fees due for Axis Steel Centre @ SiLC in Johor, Malaysia.
Its subsidiary, Yongnam Engineering, occupies the space.
It is stated in the letter of demand that Yongnam Holdings had unconditionally guaranteed Yongnam Engineering’s payments, and would have to discharge all obligations, responsibilities, liabilities and covenants under the lease of the premises.
The letter of demand asked that Yongnam pay the outstanding sum within seven days, by Jan 4, 2023.
If the company fails to pay up, Axis’ trustee shall institute legal proceedings for the recovery of the sum, together with all costs and interest incurred thereto.
Yongnam Holdings said it intends to continue discussions with Axis’ trustee and seek its continued support for the revision of repayment terms.
Trading of Yongnam Holdings’ shares has been suspended since Nov 24.
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