Cape EMS Berhad has formally addressed the termination of a proposed collaboration between its subsidiary, Cape Manufacturing (M) Sdn Bhd, and Aeronas Aerocraft Sdn Bhd (AeroNas), dismissing a multi-million ringgit legal claim as “purely speculative” and “without factual basis.”
In a clarifying statement, CEO Christina Tee emphasised that the relationship between the two parties never progressed beyond a preliminary Memorandum of Understanding.
According to Christina, the MOU was intended only as a framework for preliminary discussions regarding an assembly workshop for light aircraft. The company stressed that no final commercial agreement or binding implementation arrangement was ever signed.
“The collaboration was contingent on several “strict conditions,” including on the successful establishment of an assembly plant, obtainment of all relevant regulatory approvals and compliance with technical, financial, and corporate governance requirements” she said,
The CEO added that the decision to terminate the MOU followed an internal due diligence and risk assessment process. “CEB identified several issues concerning corporate governance, compliance, and financial viability.”
In line with its risk management framework, CMM elected to halt the collaboration. CEB maintains that any legal claims asserted by AeroNas beyond the original scope of the MOU lack a proper contractual basis.
Cape EMS addressed specific allegations made by AeroNas in ongoing legal proceedings, categorising the claims as being made in “bad faith” to embarrass the group. The disputed claims totals to RM279 million.
Christina added that the group had instructed its solicitors to apply to the High Court for “further and better particulars” regarding these claims. “The company intends to apply for a strike-out of the lawsuit should AeroNas fail to substantiate its figures” she concluded.
Cape EMS’ Board of Directors state that the legal proceedings are not expected to have a material adverse impact on the group’s financial or operational standing.
The company has reassured shareholders that the AeroNas project was not a core component of its “CEB 2.0” transformation roadmap. The termination the group said is expected to have zero impact on the company’s future growth trajectory or business continuity.
