Cape EMS Unit Faces RM279.5 Million Lawsuit Over Aircraft Manufacturing Collaboration

Cape EMS has confirmed that its wholly owned subsidiary, Cape Manufacturing (M) Sdn Bhd (CMM), has been served with a lawsuit by Aeronas Aerocraft Sdn Bhd regarding a proposed aircraft manufacturing collaboration. The legal action, filed at the High Court in Johor Bahru on 5 May 2026, stems from a memorandum of understanding signed on 9 March 2025. Aeronas is seeking various claims and damages against CMM, including alleged special damages of RM10.02 million and RM40 million, as well as alleged loss of income and profits amounting to RM229.5 million. The plaintiff is also seeking general damages, exemplary damages, legal costs, and other relief deemed appropriate by the court. In response, CMM filed legal proceedings at the High Court in Kuala Lumpur on 8 May 2026 against Aeronas Aerocraft Sdn Bhd, PetraX5 Sdn Bhd, Raja Shazreen Petra Binti Raja Azman Shah, Raja Iman Petra Bin Raja Azman Shah, and Kamarulzaman Bin Abdul Karim. The company's counterclaims involve alleged misrepresentations, alleged breaches of obligations under the memorandum of understanding, and the recovery of monies and losses arising from the collaboration. Cape EMS stated that it disputes the claims entirely and believes the allegations are without merit. The company has instructed its solicitors to vigorously defend the Aeronas suit while pursuing its own claims in court. Cape EMS added that it is currently assessing the financial and operational impact of the legal proceedings and will make further announcements on any material developments.

(Source：Businesstoday | Malaysia)