Yongnam subsidiary gets letters of demand for payments owed to engineering service providers

YONGNAM Engineering, a wholly-owned subsidiary of steel fabricator Yongnam Holdings : AXB 0%, has received letters of demand from the solicitors of two engineering companies, for a total of RM2.4 million (S$680,823.87).

The letters from Soon Kim Engineering Works and Seng Yap Engineering Enterprise, which were in relation to balance outstanding sums due from services rendered, were dated Nov 10, suspended stock Yongnam’s judicial managers said on Tuesday (Nov 28) in separate bourse filings.

They were both seeking balance payments, after Yongnam on Sep 7 made partial payments to both companies following notices of demand dated Aug 8.

The letter from Soon Kim Engineering alleges that Yongnam is liable for the remaining sum of RM996,225.86, after it paid RM50,000 of the total RM1,046,225.86 previously.

Similarly, Seng Yap Engineering is now seeking payment of RM1,383,545.91, after Yongnam’s previous payment of RM50,000 from the total of RM1,433,545.91 owed.

The letters of demand are calling for repayment to the companies or their solicitors within seven days from Nov 23, 2023, failing which they will commence legal proceedings against Yongnam Engineering for the recovery of the outstanding sum without further reference to Yongnam.

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In such an event, the letters said all costs and disbursements incurred would be borne by Yongnam, its judicial managers said.  

They added that they will make further announcements on the Singapore Exchange if and when there are material developments which warrant disclosure.