KUALA LUMPUR (Jan 14): Carzo Holdings Bhd (KL:CARZO) is seeking to strike out a claim filed by China-based supplier Yantai Huijia Fruits and Vegetable Co Ltd over an alleged outstanding payment of US$117,470.50 (RM538,015) for fruits supplied to its subsidiary.

In a bourse filing, the LEAP Market-listed fruit supplier said the claim against its wholly owned subsidiary Carzo Import (M) Sdn Bhd (CISB), and its director Datuk Seri Delon Lee Kean Yip, is baseless.

Carzo further clarified that Lee is not a guarantor for the alleged debt.

The company said the financial impact of the lawsuit would be limited to potential litigation losses. The suit is scheduled for case management at the Sessions Court on Jan 21.

This suit comes just a month after Carzo was sued by Everfresh Fruits Import Sdn Bhd, which sought RM48,705 in alleged outstanding payments, and Croses Produce Sdn Bhd, which claimed an alleged unpaid sum of RM258,472 for fruits supplied.

Carzo, which has been loss-making since 2022, was listed on the LEAP Market in September 2021.

Under LEAP Market listing rules, the company has until August 2025 to secure a new core business or face delisting.

Carzo's external auditor, Nexia SSY PLT, has raised doubts about the company’s ability to continue as a going concern, in Carzo's financial statements for the year ended June 30, 2024. The auditor noted that the company's current liabilities exceeded its current assets by RM11.55 million, with a capital deficiency of RM12.08 million.

Additionally, the company has failed to meet financial covenants for certain borrowings, allowing banks to demand immediate repayment of the outstanding borrowings, amounting to RM6.64 million, the auditor noted.

Carzo shares have not been traded since Dec 9, 2024, when they closed at 40 sen.

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Fruit supplier Carzo sued by China-based supplier over unsettled debt