Hong Kong’s Apple Daily Printing – one of three Next Digital subsidiaries with frozen assets – sued for overdue payments
- The company allegedly owes more than HK$2 million for a centralised cooling system it had installed earlier this year
- Funds belonging to the firm were frozen under the national security law on June 17, a week before a crackdown led to the Apple Daily newspaper closing
A subsidiary of Hong Kong media group Next Digital has been sued for more than HK$2 million (US$257,000) in overdue payments owed to a service provider.
In a writ filed on Monday, Johnson Controls Hong Kong took Apple Daily Printing to the District Court, alleging the latter has failed or refused to make full payment of fees agreed under a contract to replace an air-cooled chiller plant – a centralised cooling system – despite repeated demands last month.
Johnson Controls is a Hong Kong company that specialises in the provision and installation of electrical appliances, ventilation systems, sprinkler systems and fire alarm systems, among other things.
Apple Daily Printing is a wholly owned subsidiary of Next Digital and provided printing services to complement the now-defunct Apple Daily newspaper’s business in Hong Kong.
The contract sum, according to the filing made available on Tuesday, was agreed at HK$2.53 million.
Lawyers for the plaintiff said the defendant paid HK$253,000 – or 10 per cent of the contract sum – on or about March 8 and the contracted works were “practically completed” on April 23.
The company subsequently issued an invoice seeking payment of the remaining HK$2.024 million on June 4.
“Despite repeated demands of the plaintiff including the letter from the plaintiff’s solicitors dated July 16, 2021, the defendant has failed and/or refused to pay the plaintiff the said sum,” the lawyers wrote.
The plaintiff is now seeking full repayment plus interest and legal costs.
Apple Daily bosses to ask authorities to release some frozen assets to pay staff wages
National security police froze the assets of three companies – Apple Daily Limited, Apple Daily Printing Limited and AD Internet Limited – amounting to HK$18 million (US$2.32 million) on June 17.
Apple Daily printed its last edition on June 24. Police that month arrested several of the tabloid-style newspaper’s senior executives.
Some in that group have since been charged with conspiracy to collude with foreign forces under the national security law over a series of articles allegedly calling for sanctions on Chinese officials.
Founder Jimmy Lai Chee-ying faces multiple charges related to the Beijing-imposed legislation, which bans acts of secession, subversion, terrorism and collusion with foreign forces. He is currently serving sentences on unrelated convictions stemming from his role in illegal protests in 2019.
