KUALA LUMPUR (Jan 24): Sarawak Consolidated Industries Bhd (KL:SCIB) on Friday said that the project developer for the now-scrapped civil servants housing project in Perak has disagreed with the repayment terms, and denied the outstanding debt it owed to the Main Market-listed company.
On Jan 13, SCIB announced that the RM162 million contract awarded to its wholly owned unit, SCIB Properties Sdn Bhd (SCIBP), from Awana JV Suria Saga Sdn Bhd in July 2024 as part of a debt settlement collapsed after Awana failed to fulfil a key condition precedent within the stipulated time frame.
The industrialised building systems (IBS) specialist said that it has received a letter from Awana disputing the repayment terms outlined in their previous settlement agreement in 2023 (SA 2023), according to the filing.
Awana disagrees with the repayment terms outlined in Schedule A of the SA 2023, particularly in relation to the balance of outstanding debt of RM18.64 million — excluding the first instalment payment of RM75,000, which Awana has paid to SCIBP.
Awana has also denied the RM5.35 million is due for repayment to SCIB as of Dec 30, 2024.
“Awana maintains that the repayment of the debt to SCIBP shall be based on the work progress for the project and the income generated from the sales, with repayment being contingent upon the profits reported under the profit and loss report for the project,” the filing said.
SCIB said that the company is now seeking legal advice on the next available recourse.
The civil servants housing contract known as “Program Perumahan Penjawat Awam” (PPAM Mualim), was initially part of the SA after both parties had mutually agreed to scrap an engineering, procurement, construction and commissioning (EPCC) contract back in July 2023.
SCIB was also made the corporate guarantor in favour of MBSB Bank Bhd for loan facilities granted to Awana to complete the project.
In return, Awana was required to appoint SCIBP as the exclusive main contractor for the civil servants housing project. Awana also agreed to repay SCIBP an outstanding amount of RM19.13 million, which included a debt balance of RM18.64 million and an additional RM492,432 that were advanced on behalf of Awana by SCIB Industrialised Building System Sdn Bhd.
Shares of SCIB closed unchanged at 22 sen on Friday, valuing the company at RM145.14 million.