Kitchen Culture’s wholly owned subsidiary KHL Marketing Asia-Pacific (KHLM) has received a statutory demand from Kim Hup Lee & Co. for S$1.77 million in alleged outstanding rental arrears for floors 1-3 of the property at 25 New Industrial Road in Singapore for 2016-2018, the company said in a filing to SGX Tuesday.
Under the demand, Kim Hup Lee has demanded payment within 21 days, failing which, it will raise a statutory presumption of KLHM’s inability to pay its debts at any winding up application it may bring, Kitchen Culture said in the filing.
Kim Hup Lee is owned and controlled by parties related to Kitchen Culture’s Director Lim Wee Li, but Lim has said Kim Hup Lee remains separate from him and that he doesn’t have a direct interest in it, the filing said.
Kitchen Culture said it has begun an investigation of the alleged rental arrears and has sought legal advice.
“The group has received preliminary advice that the alleged rental arrears are not due and owing as alleged and/or cannot be enforced in the manner sought by Kim Hup Lee,” Kitchen Culture said. “The group has been advised that there is no basis – in fact or law – for Kim Hup Lee to rely on the statutory presumption that KHLM is unable to pay its debts as and when it falls due.”