KUALA LUMPUR (Feb 2): MMAG Holdings Bhd said its 95%-owned flagship entity MJets International Sdn Bhd has made full payment of the judgement sum awarded by the court in relation to the lawsuit by Comone International Logistics Co Ltd over alleged non-payment of monthly repayment instalments.
In the lawsuit, Comone claimed two separate amounts of US$120,000 (RM540,840) and US$49,900 (RM224,899) along with liquidated damages of RM10,000 from MJets.
"There is no further financial impact in relation to the suit since the judgement sum has been satisfied," MMAG said in a filing with Bursa Malaysia on Friday.
On March 6, MMAG said MJets was slapped with a lawsuit over the alleged non-payment of monthly repayment instalments. Comone claimed that MJets did not pay the instalments for the cancellation of a proposed joint venture agreed to by MJet's previous management, before it became a subsidiary of MMAG.
It is worth noting that MMAG had previously in April 2023 sued former MJets directors Gunasekar Mariappan and Philip Phang Kin Ming for alleged breach of fiduciary duties. The group is seeking special damages of RM23.17 million, judgement interest at 5% per annum from the date of judgement until full settlement, and any other relief the court deems fit.
Prior to that, MMAG announced on Feb 21 that the duo had been suspended following a raid at MJets' office on Feb 13, based on a report the Malaysian Anti-Corruption Commission had received. MJet's bank accounts had also been frozen.
In response, the former directors later in July 2023 initiated a RM49.85 million counter-suit against MMAG and its directors for allegedly conspiring to injure the duo's investments in MJets.
Gunasekar and Phang argued that the complaint by MMAG against them was baseless, unsubstantiated and a ploy to oust them from MJets.
MMAG bought the stake in MJets for RM21.36 million from JT Aerotech Solutions Sdn Bhd in November 2020 to have its own air cargo arm, to complete its supply chain of first-, middle- and last-mile delivery. At that time, MJets was a provider of airline charter flights.
Shares in MMAG closed unchanged at 9.5 sen on Friday, giving the company a market capitalisation of RM153.03 million.