KUALA LUMPUR (July 26): Cuscapi Bhd (company) and its wholly-owned subsidiary Cuscapi Malaysia Sdn Bhd have respectively received letters of demand from Hitachi Systems Digital Services (Singapore) Pte Ltd. Hitachi claimed that Cuscapi Malaysia have not made payments for the purchase of Rev Hardware Equipment.

Software developer Cuscapi Bhd said in a Bursa Malaysia filing yesterday that Hitachi is demanding from Cuscapi Malaysia US$3.6 million (about RM15 million) and legal cost for the notice. Cuscapi Bhd said Hitachi's letters of demand were dated July 23, 2018.

"Hitachi claims that Cuscapi Malaysia had failed, neglected, refused and/or defaulted in making requisite payments pursuant to an agreement for the purchase of Rev Hardware Equipment dated 23 September 2016, and that Hitachi is therefore demanding that Cuscapi Malaysia pays a sum of USD3,600,248.22 and legal cost for the notice, failing which legal proceedings can be instituted against Cuscapi Malaysia.

"Hitachi also claims that the company (Cuscapi Bhd) is liable to pay the sum which is due and payable by Cuscapi Malaysia pursuant to a deed of corporate guarantee dated 26 September 2016, failing which legal proceedings can be instituted against the company," Cuscapi Bhd said.

Cuscapi Bhd said the company and Cuscapi Malaysia are seeking legal advice on the matter and that they believe they have good grounds to defend themselves against Hitachi’s claim. Cuscapi Bhd said : "The company will make the necessary announcement on material development of this matter in due course." 

Today, Cuscapi Bhd said in a separate statement that its share trade was halted between 9am and 10am due to the announcement on Hitachi's claim. At 10:34am, 
Cuscapi Bhd shares fell 1.5 sen to 31 sen with some 29 million units traded.