KUALA LUMPUR (Oct 16): Century Logistics Holdings Bhd has filed a claim against Nestlé Products Sdn Bhd seeking RM8.44 million, being damages and loss of profit resulting from misrepresentation by the latter.
The logistics company has also filed four counter-claims against Nestlé Products, Nestlé Manufacturing (Malaysia) Sdn Bhd, Nestlé Asean (Malaysia) Sdn Bhd and Cereal Partners (Malaysia) Sdn Bhd, this time to seek outstanding sums totaling RM853,997.95 being amount payable for services rendered for interim assignments that had been undertaken by Century Logistics' wholly-owned subsidiary Century Total Logistics Sdn Bhd (CTL).
"The company will be making further announcements as and when necessary," Century Logistics said in a filing with Bursa Malaysia today.
CTL yesterday was served with a writ of summons together with a statement of claim in relation to a claim filed by Nestlé Products, alleging that CTL had failed and/or neglected to exercise due care, diligence and skill in undertaking its scope of work for outbound logistics services as set out in Nestlé Products’ request for quotation.
Nestlé Products alleged that as a result of the failure and/or breach, it had suffered losses totaling RM21.65 million.
The RM21.65 million claim comprised air freight costs totalling RM5.58 million, detention, demurrage and other related costs of RM8.85 million, Nestle Products staff mobilisation costs of RM2.71 million and stock write off and goods destroyed amounting to RM4.51 million.
"In the unlikely event that Nestle Products' demand materialise, the claim sum of RM21.65 million amounts to approximately 8% of the net assets of Century Group as at Dec 31, 2014. There will not be any material operational impact of the claim on Century Group," Century Logistics said.
Century Logistics' share price closed unchanged at 87 sen today, giving it a market capitalisation of RM324.92 million.
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