KUALA LUMPUR (May 5): IWH CREC Sdn Bhd, a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering (M) Sdn Bhd, has dismissed as unacceptable claims by TRX City Sdn Bhd that the share sale agreement (SSA) over the sale of a 60% equity interest in Bandar Malaysia Sdn Bhd has lapsed.

On Wednesday, IWH CREC received a letter from TRX City informing it that the SSA dated Dec 31, 2015 entered into between the two parties has lapsed, after IWH CREC failed to meet the payment obligations outlined in the conditions precedent under the deal. TRX City is a wholly-owned subsidiary of the Ministry of Finance.

In a statement today, IWH CREC, however, maintained that it has fulfilled all the required payment obligations under the SSA on its part towards TRX City to date.

"IWH CREC has written to TRX City to express that TRX City's unilateral declaration that the SSA has lapsed is unacceptable. IWH CREC reserves all its rights in this matter," it said.

IWH CREC added that TRX City's allegation that the SSA has lapsed runs contrary to the conduct of the parties in progressing the SSA towards its completion in accordance with the spirit of the SSA thereof.

This follows a detailed and thorough review of both IWH CREC's and TRX City's respective obligations under the SSA including the agreed process/milestones with regard to fulfilment thereof, and relevant records, by the company.

"Prior to IWH CREC's receipt of the TRX City letter, TRX City was aware that IWH CREC has complied with the conditions precedent and accordingly the SSA has become unconditional.

"IWH CREC has officially requested TRX City for completion of the SSA," it added.

IWH CREC also pointed out that it has sufficient financial resources and capabilities to ensure the smooth and successful execution and implementation of the development of the Bandar Malaysia project in Sungei Besi here.