KUALA LUMPUR (Jan 9): GDB Holdings Bhd's unit Grand Dynamics Builders Sdn Bhd (GDBSB) has filed a winding-up petition with the High Court against KSK Land Sdn Bhd.
GDBSB is seeking for KSK Land to be wound up by the court, and the appointment of a private liquidator nominated by GDBSB to liquidate the company, said GDB in a bourse filing on Tuesday.
The filing of the petition follows the court's setting aside of KSK Land's restraining order against its creditors, as well as an ex parte court order for leave to summon a meeting with the creditors as part of a proposed scheme of arrangement.
In June 2023, GDBSB sued KSK Land for RM102.08 million for purportedly breaching its obligations under a corporate guarantee made in August 2022.
GDBSB also has arbitration proceedings against KSK Land's wholly owned subsidiary Damai City Sdn Bhd (DCSB), where the adjudicator has ordered the company to pay RM97.8 million.
GDBSB was appointed as the main contractor for the 8 Conlay mixed development project in Jalan Conlay here, after GDB secured the letter of intent in October 2020 from KSK Land.
In April 2022, KSK Land terminated the contract with GDBSB for the said 8 Conlay project.
KSK Land said the contract between DCSB and GDBSB was terminated due to a failure to achieve agreeable solutions to various disputes relating to construction site matters, over a period of the last nine months.
In a separate filing, GDB said GDBSB had been notified by its solicitors that they were informed by DCSB’s solicitors that a creditor of DCSB, namely KCJ Properties Sdn Bhd (KCJP), had filed an ex parte application for a judicial management order to place DCSB under the judicial management of a judicial manager.
KCJP, a subsidiary of KSK Group Bhd, is seeking for DCSB to remain under judicial management for a period of six months, with no resolution to be passed or order made for the winding up of the company during the period.
GDB said GDBSB will consult its solicitors to explore the next steps.
Shares in GDB closed unchanged at 19.5 sen on Tuesday, giving the company a market capitalisation of RM178.24 million.