KUALA LUMPUR (Sept 8): Construction outfit GDB Holdings Bhd’s legal actions against Damai City Sdn Bhd (DCSB) over the Conlay 8 project disputes are to be put on hold for three months after the High Court granted DCSB a three-month restraining order against its creditors.
In a bourse filing on Friday, GDB said the restraining order accompanied a court order granting DCSB leave to hold a meeting with its creditors for the purpose of considering a scheme of arrangement and compromise.
The group said that in view of the court order, its subsidiay Grand Dynamic Builders Sdn Bhd will seek advice from its solicitors concerning the court, arbitration and adjudication proceedings between DCSB and Grand Dynamic Builders.
GDB said it has three lawsuits against DCSB, as well as an arbitration proceeding and an adjudication proceeding.
In June, Grand Dynamic Builders sued KSK Land Sdn Bhd, DCSB’s parent company, for RM102.08 million in relation to breaching its obligations under a corporate guarantee made in August last year.
Meanwhile, in July, an adjudicator in adjudication proceedings in relation to the same claimed sum under the corporate guarantee ordered DCSB to pay RM97.8 million to Grand Dynamic Builders.
Another suit in the High Court is to enforce the adjudication judgment as if it is a judgment of the court.
Back in 2020, Grand Dynamic Builders was awarded a RM1.25 billion contract from DCSB for the construction of the 8 Conlay mixed development.
But in August last year, Grand Dynamic Builders suspended its works on the 8 Conlay project and sued KSK Land for a sum of RM120.7 million arising from the corporate guarantee.
Grand Dynamic Builders withdrew the suit with liberty to file afresh in March and remobilised and recommenced construction works on Tower A after receiving further partial payment, while other sections of works remained suspended, according to the group’s latest annual report.
Shares in GDB ended unchanged at 21 sen, giving the group a market capitalisation of RM196.87 million.