KUALA LUMPUR (Aug 2): Mah Sing Group Bhd’s wholly-owned unit Capitol Avenue Development Sdn Bhd has been served with winding up petitions for failing to settle RM2.19 million in outstanding amounts.
Capitol Avenue, which completed a development project known as “Sutera Avenue” in Sabah, was served with the notice on July 26 this year and the petition was taken out by HCL & Sons Holdings Sdn Bhd (Petitioner) via its solicitors, Messrs Chee & Co.
“The Petition is not expected to have any material financial impact and operational impact (on the Company) for the financial year ending Dec 31, 2022 (FY22).
“The Company is not expected to incur any losses from the Petition, as Capitol Avenue is disputing the alleged debt and the Judgement (which forms the basis of the Petition) as mentioned above.
“Furthermore, Capitol Avenue’s third party legal action is still afoot. Consequently, Capitol Avenue is also disputing the Petition and has sought legal advice on this matter,” the group explained in a local bourse filing on Tuesday (Aug 2).
Meanwhile, Mah Sing clarified that the cost of investment and the net tangible asset of Capitol Avenue as at Dec 31, 2021 (FY21) were RM2.50 million and RM2.87 million respectively.
Shares in Mah Sing ended one sen or 1.67% lower to 59 sen on Tuesday, giving it a market capitalisation of RM 1.42 billion.