Yongnam Holdings AXB - and its wholly-owned subsidiary Yongnam Engineering have received separate notices of demand from Trevor George Partnership (TGP) in relation to outstanding legal fees due and owed to the law firm.

 

The notice of demand received by Yongnam, dated Jan 16, alleges that a collective sum of RM53506.82 ($15173.39) has been due and owed to TGP for over 90 days.

 

TGP&rsquo s notice states that the law firm had previously served Yongnam an invoice on two occasions July 10 and Aug 18, 2023, for its work on an appeal in the Johor Bahru High Court against the execution of a writ of distress and its work on a summary judgement application in the Johor Bahru High Court.

 

The notice of demand issued to Yongnam Engineering, also dated Jan 16, alleges that a collective sum of RM34227.39 has also been due and owed to TGP for 90 days. The subsidiary was issued invoices on the same dates as its parent company in 2023.

 

Unless both sums are paid to TGP within seven days from Jan 16, the law firm says it will be compelled to commence legal proceedings against both Yongnam and its subsidiary for the recovery of its legal fees.

 

Separately, Yongnam Engineering also faces a claim of RM1.69 million after failing to make an appearance in the Johor Bahru High Court for the suit filed by Pantech Gelvanising on Dec 8, 2023.

 

YONGNAM Engineering, a wholly owned subsidiary of steel fabricator Yongnam Holdings : AXB 0%, has received a writ of summons and statement of claim by Malaysian firm Pantech Gelvanising in the Johor Bahru High Court.

 

The writ of summons, dated Dec 8, 2023, commands that Yongnam Engineering enter an appearance in the suit within 14 days after writ has been delivered.

 

In a bourse filing on Tuesday (Jan 9), Yongnam Holdings&rsquo judicial managers said that Yongnam Engineering did not enter an appearance in the suit within the stipulated timeframe of 14 days after the writ&rsquo s delivery. It added that, in default of doing so, Pantech may &ldquo proceed to seek judgment and execution in respect of the suit&rdquo .

 

Pantech is claiming RM1.7 million (S$485,643) from Yongnam Engineering in relation to outstanding amounts owed for the provision of structural fabrication services.

 

In its statement of claim, also dated Dec 8, 2023, Pantech said it had agreed to provide these services to Yongnam Engineering &ldquo at agreed rates and payment terms&rdquo .

 

The claim alleges that while Pantech had fulfilled its service commitments, Yongnam failed to pay the amount owed within the stipulated time, &ldquo despite several reminders and a notice of claim dated Apr 18, 2023&rdquo .

 

Besides the RM1.7 million, Pantech is also claiming interest on the sum &ndash at a rate of 1.5 per cent per month from Dec 8, 2023, to settlement of the suit. It is also claiming costs and any relief that the court deems fit.

 

Yongnam Holdings&rsquo judicial managers said they will make further announcements should there be &ldquo any material developments which warrant disclosure, in compliance with obligations under the listing manual&rdquo .

 

Trading of the group&rsquo s shares has been suspended since Nov 24, 2022.

A JOINT-VENTURE (JV) partner of Yongnam Holdings has exercised its rights to terminate a deed tied to a S$553.8 million tunnel-and-infrastructure contract with the Land Transport Authority (LTA).

 

Yongnam was placed under judicial management on Aug 14.

 

Its subsidiary Yongnam Engineering & Construction (YEC) had signed the deed with Leighton Contractors (Asia) on Nov 27, 2017 with the intention to perform works together for a portion of LTA&rsquo s North-South Corridor project known as N103.

 

The North-South Corridor is a 21.5 km transport corridor stretching from Admiralty to Rochor that is expected to be completed in phases from 2027.

 

In a bourse filing on Thursday (Dec 21), Yongnam&rsquo s judicial managers said that the termination of the deed came as YEC said in an Oct 16 letter that it was not in a position to pay S$1.5 million towards the JV.

 

The S$1.5 million was proportionate to its 30 per cent interest in the JV. The JV had required S$5 million within 21 days from Oct 6.

 

With that, Leighton issued a letter dated Nov 24 stating that it was exercising its rights to terminate the JV deed on the basis that YEC was in breach of the deed for non-compliance with the payment direction.

 

There was also the basis that YEC had committed an insolvency event since it was placed under judicial management, the managers noted.

 

The managers, meanwhile, updated that YEC has entered into a novation agreement with Leighton and LTA with respect to the project. 

 

This means that LTA will release and discharge YEC from the performance of the project and from all claims, demands, obligations and liabilities arising out of or in connection with the project.

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&rsquo 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&rsquo 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.

 

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.

 

and its subsidiary have been ordered by a court in Malaysia to pay RM105.4 million (S$30.2 million) in damages to the trustee of Axis-Reit.

 

The steel fabricator had previously received a letter of demand from RHB Trustees on behalf of Axis-Reit in December 2022 after Yongnam Engineering had failed to adhere to a lease agreement for a unit it occupied at the Axis Steel Centre@SILC Johor.

 

In 2014, Yongnam Engineering had signed a tenancy agreement with Axis-Reit for 15 years. However, the lease agreement was terminated on May 8, 2023, after Yongnam Engineering defaulted on payments. 

 

As a result, RHB Trustees sued the Yongnam subsidiary for rental payments amounting to S$1.1 million, as well as S$30.2 million worth of rent it would have collected had Yongnam Engineering fulfilled the contract.

 

Yongnam Holdings and its subsidiary will also have to pay compensation charges at a rate of 1.5 per cent for both sums, from Jun 8, 2023, until the date of full and final realisation as well as legal expenses. 

 

Yongnam Engineering has received several letters of demand in 2023.

 

On Sep 5, the unit received a letter of demand from the attorney of Malayan Banking in relation to outstanding payments of RM15.9 million due under three loan facilities.

 

Then on Sep 11, it received another letter of demand from Mitsui Bussan Pana Harrison &ndash issued by the solicitors of Ergo Insurance &ndash in relation to outstanding payments due under a workman&rsquo s compensation policy.