Service charge

NWP received notice of demand for RM2.6 million on rental, service charge arrears

KUALA LUMPUR (February 14): NWP Holdings Bhd has received a formal notice from Seri Tiara Development Sdn Bhd regarding unpaid rent, service charges and late payment interest.

The 100% subsidiary of the company, NWP Resources Bhd, had received on February 11 the notice issued by MM. Joseph Ting & Co on behalf of his client Seri Tiara Development.

NWP Resources had defaulted on the payment of unpaid rent from October 2021 to February 2022, as well as service charges and default interest totaling RM2.6 million for the premises in Block A, Desa Commercial Center on 8 February.

The late payment is because there are no sub-tenants for the premises and therefore no revenue is being collected for rental payments, according to NWP in a scholarship filing.

The company said it negotiated with Seri Tiara, but the negotiations did not lead to a final or favorable conclusion.

“There was a chance of receiving [a] Seri Tiara’s liquidation petition and the ongoing late payment interest charges, the final amount of which could not be identified at this time,” he said.

The wood products manufacturer also added that there will be no immediate impact on its business and operations. The group will seek to continue its business and operations despite the default.

NWP shares closed up one sen or 4.35% at 24 sen on Monday, February 14, giving the group a market capitalization of RM126.34 million.