MRCB’s unit served winding-up petition by Southern Builders

MRCB’s unit served winding-up petition by Southern Builders
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KUALA LUMPUR (March 28): Malaysian Resources Corp Bhd’s (MRCB) wholly-owned subsidiary MRCB Builders Sdn Bhd has been served with a winding-up petition by Southern Builders (J) Sdn Bhd.

MRCB said a dispute had arisen between the two parties and it was referred to adjudication under the Construction Industry Payment & Adjudication Act 2012.

An adjudication decision was entered against MRCB Builders on Dec 13, 2017 for the sum of RM10.7 million by Southern Builders, MRCB said in a filing with Bursa Malaysia.

The amount includes the adjudication amount and costs and reimbursements.

MRCB said its subsidiary is disputing the decision and has filled an appeal.

“Except for the amount claimed, MRCB Builders is not expected to incur any further losses from the winding-up petition,” the group said.

MRCB Builders is taking necessary steps to defend itself against this matter, the filing said. 

Having said that, the company said MRCB Builders has fully settled the outstanding amount, subject to disputing the same in arbitration and reserving all its rights in the arbitration proceeding.

At 4.39pm, shares of MRCB were two sen or 2.33% higher at 88 sen, giving it a market capitalisation of RM3.83 billion. Year-to-date, the stock has risen by 44.26%.