NWP served with RM2.6m notice of demand over rental, service charge arrears

KUALA LUMPUR (Feb 15): NWP Holdings Bhd has received a notice of demand by Seri Tiara Development Sdn Bhd in relation to the outstanding rentals, service charges and late payment interest. 

The company’s wholly-owned subsidiary NWP Resources Bhd had on Feb 11 received the notice issued by Messrs Joseph Ting & Co on behalf of its client Seri Tiara Development. 

NWP Resources had defaulted on payment of outstanding rentals from October 2021 to February 2022, as well as service charges and default interest totaling RM2.6 million for the premise in Block A, Desa Commercial Centre, on Feb 8. 

The delay in payment is due to the fact that there are no subtenants for the premise and therefore no income is being received for the rental payments, according to NWP in a stock exchange filing. 

The company said it had been negotiating with Seri Tiara, but the negotiations had not reached a final or favourable conclusion.

“There were chances of receiving [a] winding up petition from Seri Tiara and continuing charges of late payment interest, which the ultimate amount could not be identified at the moment,” it said. 

The timber product 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 (Feb 14), giving the group a market capitalisation of RM126.34 million. 

Edited by Lam Jian Wyn

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