According to Nera Telecommunications, Great One Coconut Products (also known as the previous landlord) is claiming that there was a delay in Nera Malaysia handing over the vacant factory it had leased from its previous landlord when the lease agreement expired.
The previous landlord also claims that Nera Malaysia failed to pay the liquidated damages pursuant to the lease agreement despite serving a notice of claim to the latter on Nov 22, 2024.
As such, Great One Coconut Products is now claiming RM233,709.68 ($71,049.85) in liquidated damages, minus the deposit paid by Nera Malaysia. It is also seeking interest on all amounts payable by Nera Malaysia at the rate of 5.00% per annum from the date of judgment until the date of full settlement of all amounts payable by Nera Malaysia, its solicitor’s costs, interest on its legal fees as well as “such other and further relief as the Shah Alam Sessions Court of Malaysia deems fair and equitable”.
In its Jan 9 statement, Nera Telecommunications said that it did not make an announcement when it received the notice of claim on Nov 22, 2024, as the amount claimed was “not material”. The company was also in “active discussions” with the previous landlord to resolve the dispute amicably.
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In addition to disputing the claim, Nera Telecommunications says it is seeking legal advice and representation and intends to “vigorously defend itself” against the suit.
Pending the outcome of the suit, the company does not expect it to affect its ability to continue its business operations. The suit is also not expected to have a material impact on its net tangible assets (NTA) and earnings per share (EPS) for the FY2025 ending Dec 31, 2025.
Shares in Nera Telecommunications closed flat at 9.5 cents on Jan 9.
