This article first appeared in The Edge Financial Daily on March 29, 2019

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

In a filing with Bursa Malaysia yesterday, 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 Builder”, MRCB said.

It said the amount includes the adjudication amount and costs and reimbursements and the company 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”, it said.

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