Nexgram served with claims totalling RM2.83m

PETALING JAYA: Nexgram Holdings Bhd's 70%-owned subsidiary Blue Hill Development Sdn Bhd (BHD) has been served with 10 writ of summons and statement of claims for a total of RM2.83 million.
In a filing with Bursa Malaysia, Nexgram said all the plaintiffs are claiming for the long outstanding debts in respect of the cause of action including non-payment of building/construction materials sold and delivered, non-payment for leasing of plastering machinery and breach of credit guarantee.
The 10 plaintiffs are AYS Marketing Sdn Bhd, San Lee Engineering Trading Sdn Bhd, Steel Park Malaysia Sdn Bhd, Sadagene Steel Sdn Bhd, Hume Marketing Co Sdn Bhd, Posim Marketing Sdn Bhd, CMCM Perniagaan Sdn Bhd, KT Potential Sdn Bhd, Jakar Jaya Hardware Sdn Bhd and BRC Prefab Holdings Sdn Bhd.
The writs date as far back as Nov 1, 2016. Nexgram said it did not make any announcement before because individually, the writ of summons and statement of claim is below the materiality threshold of Nexgram in respect of its obligation to make immediate disclosure.
BHD had obtained a restraining order from the Court of Appeal dated Aug 29, 2017 for a meeting of the creditors of BHD to be convened within three months from the date of the order, with liberty to apply to the High Court to seek further extension of time).
The meeting is to consider and if thought fit, approve a scheme of arrangement to be proposed between BHD and its creditors.
In addition, its wholly-owned subsidiary Nexgram Land Sdn Bhd (NLand) had on Aug 21, 2017 filed counter-claims against Spacious Glory Sdn Bhd, the vendor of the shares in BHD purchased by NLand.
NLand is claiming that the writs clearly prove a fundamental breach on the part of the vendor against the due diligence confirmation provided by the vendor at the conclusion of the due diligence exercise conducted by NLand prior to the acquisition of the shares.
The proceeding of the counter-claim is currently an on-going matter in court. The estimated potential liability to the Nexgram Group arising from the abovementioned litigation would be RM2.83 million.
Nexgram said BHD is not a major subsidiary, and the writs and statement of claims are not expected to have any material financial and operational impact on Nexgram Group as BHD has recorded and accounted for the judgement sum in their balance sheet.
Nexgram's share price closed unchanged at 3.5 sen on Friday with a total of 105,000 shares traded.