KUALA LUMPUR (March 6): MMAG Holdings Bhd said its 80%-owned subsidiary MJets International Sdn Bhd is facing a lawsuit for alleged non-payment of monthly repayment instalments.

The suit was filed by Comone International Logistics Co Ltd, which claims that MJets did not pay the instalments for the cancellation of the proposed joint venture agreements by MJets’ previous management in 2020, before it became a subsidiary of MMAG.

“The company is currently seeking professional legal advice and will make further announcements on any material development on this matter,” said MMAG in a Bursa Malaysia filing on Monday (March 6).

Comone is claiming two separate amounts of US$120,000 (RM540,840) and US$49,900 (RM224,899) along with liquidated damages of RM10,000 from MJets.

MMAG said the suit is not expected to have any material operational impact.

MMAG also said that MJets is not a major subsidiary of the group, and that the total cost of investment amounted to RM44.66 million.

The group previously announced that the Malaysian Anti-Corruption Commission (MACC) had on Feb 19 raided MJets’ office for information and documents pertaining to a report made to the commission.

It added that due to MACC's investigation, MJets' bank accounts had been frozen.

MMAG’s share price closed unchanged at two sen on Monday, giving the group a market capitalisation of RM48.45 million.