Yongnam unit gets writ of summons, statement of claim from Malaysian galvanising firm

YONGNAM Engineering, a wholly owned subsidiary of steel fabricator Yongnam Holdings , has received a writ of summons and statement of claim by Malaysian firm Pantech Gelvanising in the Johor Bahru High Court.

The writ of summons, dated Dec 8, 2023, commands that Yongnam Engineering enter an appearance in the suit within 14 days after writ has been delivered.

In a bourse filing on Tuesday (Jan 9), Yongnam Holdings’ judicial managers said that Yongnam Engineering did not enter an appearance in the suit within the stipulated timeframe of 14 days after the writ’s delivery. It added that, in default of doing so, Pantech may “proceed to seek judgment and execution in respect of the suit”.

Pantech is claiming RM1.7 million (S$485,643) from Yongnam Engineering in relation to outstanding amounts owed for the provision of structural fabrication services.

In its statement of claim, also dated Dec 8, 2023, Pantech said it had agreed to provide these services to Yongnam Engineering “at agreed rates and payment terms”.

The claim alleges that while Pantech had fulfilled its service commitments, Yongnam failed to pay the amount owed within the stipulated time, “despite several reminders and a notice of claim dated Apr 18, 2023”.

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Besides the RM1.7 million, Pantech is also claiming interest on the sum – at a rate of 1.5 per cent per month from Dec 8, 2023, to settlement of the suit. It is also claiming costs and any relief that the court deems fit.

Yongnam Holdings’ judicial managers said they will make further announcements should there be “any material developments which warrant disclosure, in compliance with obligations under the listing manual”.

Trading of the group’s shares has been suspended since Nov 24, 2022.