KUALA LUMPUR (Sept 5): Industrial chemicals distributor Nylex (Malaysia) Bhd and media company Redberry Sdn Bhd – both subsidiaries of Ancom Bhd – are suing Utusan Melayu (Malaysia) Bhd for failure to refund deposits totalling RM18.5 million.
In a filing with Bursa Malaysia today, Utusan said it had been served on Sept 4 with a writ of summons and statement of claims from the parties.
Nylex is claiming that Utusan failed to refund the RM10 million deposit which had been remitted pursuant to letters of ‘Advertising, Branding & Communication Exercise by Nylex Group of Companies through Utusan Malaysia & Mingguan Malaysia’ dated Jan 29 and Feb 27.
Redberry's claim states that Utusan failed to refund the RM8.5 million deposit paid for “Advertising, Branding & Communication Exercise by Redberry Media Group through Utusan Malaysia & Mingguan Malaysia’ dated April 30.
Nylex’s case has been fixed for case management at the Kuala Lumpur High Court on Sept 18, while Redberry’s is on Sept 25.
Utusan said it is in the midst of seeking legal advice and is taking the necessary actions to respond to the above claims.
On Aug 20, the Malay-language newspaper and publisher was classified as a Practice Note 17 company as it defaulted in its principal and profit payment to Maybank Islamic Bhd and Bank Muamalat Malaysia Bhd, totalling RM1.18 million, and was unable to provide a solvency declaration to Bursa Malaysia.
Utusan shares closed down 2 sen or 11.11% to 16 sen today, for a market capitalisation of RM17 million.