KUALA LUMPUR (March 1): Scomi Engineering Bhd's wholly-owned subsidiary has obtained an ex parte injunction to restrain Prasarana Malaysia Bhd from wrongfully terminating the RM494 million Kuala Lumpur Monorail Fleet Expansion project.

In a filing with Bursa Malaysia today, Scomi said Scomi Transit Projects Sdn Bhd, which filed the injunction that is valid till Friday, will have the matter heard inter parte then.

Scomi said the monorail fleet expansion deal is for an upgrade of the stations in the city as well as the electrical and mechanical system, the construction of a new depot, and delivery of 12 sets of new four-car trains.

Scomi pointed out that the first contract agreement was dated June 3, 2011 while the second supplemental contract was dated April 15, 2015.

"The legal action and injunction have become necessary after Prasarana threatened to terminate the KL monorail expansion contract in disregard to the terms set out therein.

"The board wishes to inform that the effect of this pending litigation on the ongoing business performance of the company is dependent on the outcome.

The board has taken this course of action acting on the advice of its solicitors," Scomi said.

It added that further announcements on material information pertaining to this ongoing litigation will be made as deemed appropriate and in compliance with the Main Market Listing Requirements.

Scomi's stock showed no activity today.