ATA IMS faces RM20mil suit

KUALA LUMPUR: ATA IMS Bhd's wholly-owned subsidiary ATA Industrial (M) Sdn Bhd (AIM) has been served a writ of summons and statement of claim by Hong Kong-based Johnson Electric Industrial Manufactory Ltd.

ATA IMS, in a Bursa filing, said Johnson is claiming damages totalling some RM20mil (US$4.4mil) being payment for finished goods in accordance to invoices issued, payment for the raw materials pursuant to the debit note, storage costs and testing fees among other.Johnson is a motor supplier appointed by one of AIM’s customers, and as such AIM has issued purchase orders to Johnson for motors to be used in the customer’s products, with such transactions having taken place in 2020 and 2021.