KUALA LUMPUR (Oct 20): Pestech International Bhd has been issued a notice of arbitration from Syarikat Pembinaan Yeoh Tiong Lai (SPYTL) under the Asian International Arbitration Centre (AIAC), according to Pestech in a bourse filing on Friday.
The group said Pestech act as an guarantor to guarantee the due performance of the subcontracting agreement dated December 2018 entered between SPYTL and Pestech Technology Sdn Bhd (PTECH), a subsidiary of Pestech, for the maintenance of the Electrified Double Track project from Gemas to Johor Bahru.
“The aforementioned subcontract between SPYTL and PTECH was unlawfully terminated on May 10, 2023, and the disputes arising therefrom are presently being referred to in a separate arbitration proceeding under the AIAC.
“In that regard, the entire arbitral panel has yet to be constituted, as that is still in the process. PTECH has also raised substantial counterclaims against SPYTL. That arbitration follows on from the various High Court suits that have been filed in the court,” it said.
Meanwhile, the group said SPYTL is broadly seeking for certain reliefs, pursuant to the terms in the parent company guarantee, and Pestech will vigorously dispute such reliefs, and raise a detailed response in the response to the notice of arbitration that will be served in due course.
Shares in Pestech closed one sen or 2.63% lower at 37 sen on Friday, giving the company a market capitalisation of RM362.02 million.