CME Group demands RM10.13m from Bellajade on conclusion of legal dispute

CME-Group

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KUALA LUMPUR (July 22): CME Group Bhd is demanding Bellajade Sdn Bhd to pay RM10.13 million in costs owed to CME Group after the conclusion of a legal suit between them over a tenancy agreement dispute in May this year.

In a filing with Bursa Malaysia today, CME Group (fundamental: 0.65; valuation: 1.7) said it had delivered a notice of demand to Bellajade on July 16, 2015 asking for a sum of RM10.129 million, which is the principal judgment sum, interest, costs and further interest accrued until full settlement in relation to the Kuala Lumpur High Court’s decision on May 20, 2015.

CME Group said Bellajade has 21 days from the date of the notice of demand to settle the payment, failing which it shall petition the court for Bellajade to be wound up.

“The plaintiff (Bellajade) must secure or compound the same to the company’s reasonable satisfaction within 21 days from the date of receipt of this demand, in default of which, the plaintiff shall be deemed to be unable to pay their debts, in which event the company shall proceed to petition to the court that the plaintiff be wound up,” the filing read.

On May 12, CME Group had announced in a filing to Bursa that Bellajade had initiated legal proceedings against the group over disputes in relation to a three-year tenancy agreement dated Feb 21, 2013.

Under the agreement, CME Group agreed to rent the 23-storey Plaza Palas, off Jalan Ampang, Kuala Lumpur, for a rental of RM1.02 million per month commencing from Feb 20, 2013.

On May 20 this year, the Kuala Lumpur High Court had dismissed Bellajade’s claim against CME Group and ordered Bellajade to pay RM9.41 million with interest of 4% on the pre-judgment sum and 5% on the post-judgment sum and costs of RM30,000.

The court had also allowed a counterclaim from CME Group that the tenancy agreement is void.

CME Group shares closed unchanged at 7.5 sen, with a market capitalisation of RM33.08 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)