KUALA LUMPUR: Lien Hoe Corp Bhd has withdrawn its letter of demand seeking RM50mil plus interest from AQRS The Building Company Sdn Bhd in relation to their September 2011  agreement to jointly develop serviced apartments in Johor Baru.

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.

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