Date : 28 March 2019

WINDING UP / RECEIVER & MANAGER / RESTRAINING ORDER / SPECIAL ADMINISTRATOR WINDING-UP PETITION ON MRCB BUILDERS SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF MALAYSIAN RESOURCES CORPORATION BERHAD

MALAYSIAN RESOURCES CORPORATION BERHAD

Type Announcement
Subject WINDING UP / RECEIVER & MANAGER / RESTRAINING ORDER / SPECIAL ADMINISTRATOR
Description
WINDING-UP PETITION ON MRCB BUILDERS SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF MALAYSIAN RESOURCES CORPORATION BERHAD

Malaysian Resources Corporation Berhad (“MRCB” or “the Company”) wishes to announce that its wholly-owned subsidiary, MRCB Builders Sdn Bhd has been served with a winding-up petition. The details of the petition are as follows:

 

1. Date of presentation of winding-up and date of winding-up petition were served

 

The winding-up petition against MRCB Builders Sdn Bhd (“MBSB”) was presented via The High Court of Malaya at Kuala Lumpur, Winding-up No. WA-28NCC-260-03/2019 by Messrs Samrith Sanjiv & Partners, the solicitor for Southern Builders (J) Sdn Bhd (“Petitioner”) and a copy was served to MBSB on 22 March 2019. The case management has been fixed for 4 April 2019 and the hearing is not until 20 June 2019.

 

The hearing for the stay application was held on 28 March 2019 and was adjourned to 3 April 2019.

 

 

2. The particulars of the claim under the petition, including the amount claimed for under the petition and the interest rate

 

The Petitioner’s claim is RM10,701,405.66, which includes amongst others the following:

(a) adjudication amount of RM9,966,910.78 together with interest at the rate of 5% per annum from 29 July 2017 to 28 September 2018 in the sum of RM582,996.01;

(b) adjudication costs of RM61,789.00 together with interest at the rate of 5% from 27 December 2017 to 28 September 2018 in the sum of RM3,614.23;

(c) legal cost & reimbursements in the amount of RM66,600 (inclusive of GST) together with interest at the rate of 5% per annum from 27 December 2017 to 28 September 2018

 

The claim by the petitioner is a disputed claim pursuant to an adjudication decision dated 13 December 2017. We have filed an appeal in the Court of Appeal on the adjudication decision and the appeal is fixed for hearing on 17 July 2019.

 

 

3. The details of the default or circumstances leading to the filing of the winding-up petition against MBSB

 

A dispute had arisen and was referred to the Adjudication pursuant to Construction Industry Payment & Adjudication Act 2012, whereupon an adjudication decision was entered against MRCB Builders on 13.12.2017 for the sum of RM10,701,405.66 by Southern Builders (J) Sdn Bhd and the decision is being disputed and appealed against in the Court of Appeal by MBSB.

 

 

4. Confirmation as to whether the subsidiary is a major subsidiary

 

MBSB is a wholly-owned subsidiary of the Company.

 

 

5. The total cost of investment in the subsidiary

 

The total cost of investment in MBSB is RM258,054,888.86.

 

 

6. The financial and operational impact of the winding-up proceedings on the group

 

MBSB has fully settled on a without prejudice basis, the outstanding amount, subject to disputing the same in arbitration and reserving all its rights in the arbitration proceeding.

 

 

7. The expected losses, if any, arising from the winding-up petition

 

Except for the amount claimed, MBSB is not expected to incur any further losses from the winding-up petition.

 

 

8. The steps taken and proposed to be taken in respect of the winding-up petition

 

MBSB has taken legal advice and is taking necessary steps to defend itself against this matter.

 

 

Further announcement on the development of the above matter will be made to Bursa Malaysia.

 

 

 

This announcement is dated 28 March 2019.






Announcement Info

Company Name MALAYSIAN RESOURCES CORPORATION BERHAD
Stock Name MRCB
Date Announced 28 Mar 2019
Category General Announcement for PLC
Reference Number GA1-28032019-00055