SINGAPORE - Transcorp Holdings has issued a notice of demand on March 4 to recover $2.6 million in advance deposits from a supplier after an attempt to seek a full refund failed.
Its subsidiary, Regal Motors, had inked a two-year agreement with the supplier on Jan 1, 2016, to supply motor vehicles. The agreement was then extended for a further two years on Jan 1, 2018.
As part of the agreement's terms, Regal Motors made advance deposits to the supplier. As at Oct 31, 2018, the supplier still owed about $2.8 million to Regal Motors, of which $147,000 was subsequently paid.
The advance deposits were secured by letters of undertaking from the supplier's owner and a deemed shareholder of Transcorp, former executive chairman Goh Chin Soon, whose spouse, Chu Wan Zhen, is a controlling shareholder of the company.
The company said that it would take legal action against the supplier to recover the remaining advance deposits and any associated legal cost, if the amount is not refunded within seven days from March 4.