KUALA LUMPUR (Dec 13): Loss-making group Carzo Holdings Bhd (KL:CARZO) announced that its wholly-owned subsidiary, Carzo Sdn Bhd (CZSB), has been served with a writ of summons and statement of claims from its fruit supplier.
The writ of summons and statement of claims dated Dec 4, 2024, were served to CZSB at the Kuala Lumpur Magistrate Court on Dec 5, 2024.
“The disputes between Everfresh Fruits Import Sdn Bhd (EFIT) and CZSB, among others, pertaining to the terms of payment for the fruits supplied by EFIT to CZSB which had resulted the writ of summons and statement of claims was filed against CZSB,” the LEAP Market company’s bursa filing showed on Friday.
CZSB is engaged in the business of distributing, wholesale, and trading fruits and vegetables, as well as manufacturing and processing related products.
The supplier, EFIT is seeking RM48,705 in outstanding payments for fruits supplied to CZSB.
Additionally, the potential liabilities to Carzo and CZSB arising from the writ of summons and statement of claims include an interest of 5% per annum on the judgment sum calculated from the filing date until final settlement, an interest of 5% per annum on costs, calculated from the judgment date until full settlement and other relief deemed fit and proper by the court.
While Carzo said it has sought legal advice, its board of directors said that the financial impact resulting from writ of summons and statement of claims would be limited to the expected losses arising from the litigation.
Last month, Carzo announced the immediate cessation of its core business of distributing fresh fruits and fruit products amid consecutive net losses and a negative cash flow position.
As a result, the group now has a nine-month window to acquire a new core business or face delisting from the LEAP Market.
The group incurred net losses of RM18.89 million for the financial year ended June 30, 2023 (FY2023), and RM6.55 million for FY2024.
The group reported a negative cash flow of about RM560,000 and a capital deficiency of RM12.08 million as at end-June 2024.
Carzo’s shares were not traded on Friday. The counter was last traded at 40 sen on Dec 10.