PETALING JAYA: Malaysian AE Models Holdings Bhd (Maemode) said its wholly owned unit Matromatic Handling Systems (M) Sdn Bhd had, on July 24, received a notice of termination from UEM-Bina Puri joint venture for its services in the baggage handling and sortation system at the main terminal building of KLIA2.
Maemode had earlier won the RM62mil sub-contract job for the proposed airport.
However, its financial position has deteriorated substantially over the past year. In June, Maemode fell into the PN17 category after defaulting on its RM100mil loan with two local banks.
For the period ended May 31, Maemode recorded losses of RM195.13mil, bringing full-year losses to RM207.76mil.
A huge part of its losses were due to a substantial increase in holding costs as a result of a delay in installation works on certain major projects such as KLIA2 and Keriangau Coal-Fired Power Plant in Indonesia, which also caused billings to be delayed.