This was after AQRS, which is a wholly-owned subsidiary of listed Gabungan AQRS Bhd , paid it the overdue installments, the loss-making construction firm told Bursa Malaysia.
Lien Hoe’s unit Pro-Meridian Sdn Bhd had on Sept 30, 2011, inked an agreement with AQRS to jointly develop two 38-storey blocks of serviced apartments on Pro-Meridian’s 5.43-acre land in Johor Baru.
The blocks, comprising 656 units, was estimated to have a gross sales value of RM450mil and was expected to be completed by 2015.
Pro-Meridian was entitled to a minimum guaranteed amount of RM117mil in cash.
Earlier this month, Pro-Meridian served a letter of demand on AQRS for the full payment of the outstanding sum of RM50mil and accrued interest amounting to RM456,954.
It was stated in the letter dated Sept 7 that AQRS had defaulted on the agreed schedule of payment pursuant to the supplemental agreement dated July 22 July, 2016, and other agreements.
Pro-Meridian gave AQRS 14 days to pay the said sum, failing which legal proceedings will be started for the recovery of the entire sum along with interest and cost.