Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 1): Hexza Corp Bhd said it has won a suit against a Singapore-registered firm over failure to pay rental for the lease of a power generation equipment in Myanmar.

Hexza said Singapore’s High Court has ordered Tembusu Industries Pte Ltd to pay the group US$15.29 million (RM63.89 million), with interest rate of 8% per annum from Oct 14 to the date of final payment, with costs of S$12,000.

Hexza will proceed to enforce the court order and work on the recoverability process, the group said in a filing with Bursa Malaysia.

It, however, noted that the amount of money recoverable is not known at this juncture.

Hexza said apart from the amount to be recovered, the litigation is not expected to have any material financial and operational impact on the group, as it has already made a full provision amounting to RM28.54 million on the investment, in addition to the total provisions and fair value adjustments amounting to RM8.65 million.

Hexza had taken legal action against Tembusu and its director Tin Maung Kyin, after the company failed to pay the monthly lease rental for the equipment under a January 2015 agreement.

Hexza had entered into the agreement to purchase part of the equipment for the power generation system for US$6 million from Tembusu, on condition that the latter lease back the equipment from Hexza for 10 years at a monthly rental of US$130,205.

Concurrently, Tin, a Singapore citizen of Burmese origin, who owns an 80% stake in Tembusu, executed a deed to guarantee the due performance by Tembusu of its duties and obligations, including the payment of the rent.

Hexza’s share price closed unchanged at 74 sen today, giving the group a market capitalisation of RM148.28 million.

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