Ikhmas Jaya sues developer over RM14.58m outstanding payment

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KUALA LUMPUR (Aug 16): Ikhmas Jaya Group Bhd is taking property developer ASM Development (KL) Sdn Bhd to court over an outstanding sum of RM14.58 million for contractual work done.

Its wholly-owned subsidiary, Ikhmas Jaya Sdn Bhd (IJSB), was the contractor for the project comprising seven blocks of 39-storey apartments with an 8-storey podium car park, seven levels of retail space, one level of facilities and four levels of underground parking space.

The matter is fixed for case management at the Kuala Lumpur High Court on Aug 27, the group said in a stock exchange filing today.

In addition to the sum of RM14.58 billion, Ikhmas Jaya is claiming interest at a rate of 5% per annum on the sum, costs of the legal action and any other relief or compensation the court deems fit.

Based on the opinion of its lawyers, Ikhmas Jaya expects “a high success rate” in the suit against ASM.

“As such, the legal suit is not expected to materially affect the financial and operating performance of the company for the financial year ending Dec 31, 2018,” it said.

Shares in the group closed down 1 sen or 2.9% at 33.5 sen, for a market capitalisaiton of RM185.79 million.