KUALA LUMPUR (Nov 8): UEM Edgenta Bhd is claiming RM23.76 million in damages from another firm in relation to two road construction and upgrading jobs.

In a filing today, UEM Edgenta said its wholly-owned subsidiary Edgenta Propel Bhd (Propel) is demanding the amount from Hartajaya-Benteng Timur-AMR Jeli JV Sdn Bhd (HBT), following a court decision on the matter on Aug 29.

UEM Edgenta said that between Aug 2009 and June 2010, HBT awarded two contracts to Edgenta Propel, comprising construction of a new expressway from Seremban-Port Dickson-FR5, and upgrading the road from FR5 from Pasir Panjang to Linggi, Negeri Sembilan.

Later, Edgenta Propel decided to halt work under the contracts due to non-payment by HBT of the outstanding contracts sum of RM16.12 million and RM6.41 million respectively.

On March 23, 2012, Edgenta Propel (then known as Projek Penyelenggaraan Lebuhraya Bhd) initiated legal proceedings against HBT for the due payments. Prior to the court decision HBT was instructed to pay RM4 million to Edgenta Propel for a portion of work under the contracts already completed by the latter.

On Aug 29, the High Court instructed HBT to pay Edgenta Propel RM17.47 million, with 5% interests per year calculated from April 2, 2015 until full payment is made.

“The defendant is required to effect payment to Edgenta Propel within 21 days of receipt of the said notice, failing which Edgenta Propel may initiate winding up proceedings against the defendant accordingly,” UEM Edgenta said.

Shares of UEM Edgenta closed 1 sen or 0.39% higher at RM2.59, giving it a market capitalisation of RM2.15 billion.