KUALA LUMPUR (Jan 9): Carzo Holdings Bhd, a fruit supplier listed on the LEAP Market, said its wholly-owned subsidiary Carzo Import (M) Sdn Bhd and its director have been sued by a China-based supplier over an outstanding payment of US$117,470.50 for fruits supplied to Carzo Import.
In its filing with Bursa Malaysia on Thursday, Carzo said it received the writ of summons and statement of claim for the suit, dated Dec 19, 2024, on Jan 8 from Yantai Huijia Fruits and Vegetable Co Ltd. The suit, filed at the Kuala Lumpur Session Court, has been fixed for case management on Jan 21.
Yantai Huijia is seeking an outstanding sum of US$117,470.50 (approximately RM538,014.89), along with interest at 5% per annum or a rate determined by the court until full settlement. The supplier is also pursuing any additional relief deemed fit by the court, according to Carzo.
Carzo said it has sought legal advice. Meanwhile, its board of directors said the financial impact arising from the lawsuit would be limited to the expected losses arising from the litigation.
This legal suit comes just a month after Carzo was sued by Everfresh Fruits Import Sdn Bhd, which sought RM48,705 in outstanding payments, and Croses Produce Sdn Bhd, which claimed an unpaid sum of RM258,472.60 for fruits.
Carzo had said there would be no operational impact from the lawsuits as the group had ceased its core business of distributing fresh fruits and fruit products in November 2024. The company now has up to August this year to acquire a new core business or face delisting under LEAP Market listing rules.
Carzo has been grappling with financial difficulties, incurring net losses of RM18.89 million for the financial year ended June 30, 2023 (FY2023) and RM6.55 million for FY2024. As of end-June 2024, the group reported a negative cash flow of RM560,000 and a capital deficiency of RM12.08 million.
The group’s shares have not been traded since Dec 9, 2024, when they closed at 40 sen.