This article first appeared in The Edge Financial Daily on January 31, 2020

KUALA LUMPUR: Sapura Resources Bhd’s unit Aerodome Sdn Bhd has been served with a writ of summons and statement of claims amounting to US$2.01 million (approximately RM8.22 million).

The summons was served to Aerodome by plaintiff TVPX ARS Inc, Best Perfection Holdings Ltd and Pan-Asia Property Management Sdn Bhd, according to Sapura Resources’ announcement to Bursa Malaysia yesterday.

The principal activities of Aerodome are providing hangarage and other aviation related services.

Aerodome is a wholly-owned subsidiary of DNest Aviation Sdn Bhd, which in turn is wholly-owned by Sapura Resources,

On July 6, 2012, Aerodome signed an aircraft management and maintenance agreement (AMMA) with Pan-Asia. Under the agreement, Aerodome had been appointed by Pan-Asia to manage and maintain the aircraft parked at the Old Cargo Complex at Sultan Abdul Aziz Shah Airport in Subang, Selangor.

“Whilst the aircraft was being defuelled at the Aerodome hangar by Execujet or its agent or contractor, the tail of the aircraft tipped downwards and struck the raised concrete of the apron at Aerodome hangar.

Due to the incident, the aircraft sustained damage to the aft lower fuselage in its access door area, including, inter alia, its lower frame and skin at fuselage FS731, aft equipment bay door, LH EQPT bay door frame and RH EQPT bay door frame,” Sapura Resources explained in a bourse filing.

Execujet MRO Services Malaysia Sdn Bhd, which provides maintenance services and service facilities in Malaysia for aircraft manufactured by Bombardier Inc, is named as the second defendant in the suit.

The plaintiffs claimed that Aerodome was in breach of the express and implied terms of the AMMA made between Pan-Asia and Aerodome.

The plaintiffs are claiming that as a result of the aircraft damage and the resulting damage history, the aircraft had depreciated in its fair market value by approximately US$2.01 million as at April 28, 2016 notwithstanding the repair works that have been carried out.

On top of the US$2.01 million compensation, the plaintiffs are also claiming for interest at the rate of 5% per annum on the sum from Nov 2, 2015 till the date of judgment, costs, and another interest charge at the rate of 5% per annum on the total sums from the date of judgment till full satisfaction.

Sapura Resources said it will obtain necessary legal advice from its solicitors and have instructed its solicitors to defend the claim.

Shares in Sapura Resources dropped two sen or 3.77% yesterday to 51 sen, with a market capitalisation of RM71.2 million.