Axington gets letter of demand from KL landlord

Axington has received a letter of demand from its landlord Klang Valley Projects claiming about RM15,592 (S$5,100) in rent arrears and late interest charges for September and last month.

These relate to its lease of a unit at office building Wisma Goldhill at 67 Jalan Raja Chulan in Kuala Lumpur, the Catalist-listed firm said in a filing last Friday night.

The letter of demand, dated last Wednesday, gave notice that the company was to repay the outstanding sums by today.

If it fails to do so, the landlord will take necessary action, including initiating legal proceedings against Axington without any further reference.

The Singapore-listed company said that although its bank accounts have a "more than sufficient" amount to satisfy the outstanding sums, no payment has been made because it has been in the process of changing the authorised signatories of its bank account since early September.

Axington is thus unable to make any payment until such changes take effect, it added.

The company came under the control of scandal-hit cousins Nelson Loh and Terence Loh in July. But The Business Times reported in September that the two were seeking to offload their stake in the firm.

The Lohs and business partner Evangeline Shen are co-founders of Singapore-registered Bellagraph Nova (BN) Group, which grabbed headlines earlier this year by announcing a bid for English Premier League football club Newcastle United.

But BN Group became mired in controversy because of revelations ranging from doctored images showing former United States president Barack Obama to inconsistencies in claims and retracted press statements.

As for Axington, after its takeover by the Lohs, the professional advisory services group in July proposed to change its core business to provide medical and consumer wellness services, and to acquire a Malaysian medical products distributor to kick-start this plan.

However, the acquisition fell through last month.

Ms Shen resigned as Axington chairman on Aug 30, along with three other directors who also left the board.

Last month, the Lohs also formalised their split, inking an agreement to separate their business interests.

Axington said last week that it was seeking a new auditor after a plan to switch auditors did not pan out.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on November 17, 2020, with the headline 'Axington gets letter of demand from KL landlord'. Subscribe