Thursday 28 Mar 2024
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KUALA LUMPUR: YFG Bhd announced yesterday to Bursa Malaysia that its subsidiary YFG Trolka Sdn Bhd will sue Palikota Sdn Bhd for terminating a RM255.9 million mixed real estate construction contract.

The contract was awarded to YFG Trolka on Aug 1, 2013. It involved construction and completion of the Jesselton Residences Waterfront project, a commercial and 27-storey condominium development in Kota Kinabalu, Sabah.

YFG said it had received the notice of termination from Palikota on Nov 19. It is contesting the validity of the notice and would treat it as a repudiation of contract, instead. YFG said it would sue Palikota for damages over the breach of contract.

YFG said Palikota also served a notice on YFG’s banker, United Overseas Bank (M) Bhd, to call upon the performance bond of RM12.8 million.

It said it was granted an injunction by the KL High Court yesterday to prevent Palikota from calling the performance bond until YFG’s breach of contract claim is heard and decided.

The inter-parte injunction hearing was set for Dec 9.

 

This article first appeared in The Edge Financial Daily, on November 27, 2014.

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