Mara wins appeal to regain RM6.6mil from head of aerospace association

Mara, a Malaysian government-linked investment body, has successfully appealed to recover RM6.6 million from Naguib Nor, the founder of Strand Aerospace Malaysia Sdn Bhd. The appeal, heard by the Court of Appeal, overturned a previous High Court ruling in favor of Naguib. The profit guarantee dispute arose from Mara's RM33 million investment in Strand Aerospace, which required the company to achieve specified profit targets after tax.

If the company failed to meet these targets, Mara was entitled to compensation, with the maximum liability capped at RM6.6 million. Strand Aerospace only generated profits of RM1.82 million and RM1.91 million in the two years following the profit guarantee. The Court of Appeal found Naguib liable for the breach, as his actions had negatively impacted Strand Aerospace's ability to generate profits and declare dividends. Mara was also given damages of RM50,000 in costs.