KUALA LUMPUR (June 11): Mudajaya Group Bhd (KL:MUDAJYA) announced that its wholly owned Mudajaya Corporation Bhd (MCB) has reached a mutual settlement with its client THB Power Sdn Bhd over a financial dispute.
As part of the agreement, THB Power acknowledged and admitted to owing MCB an undisputed sum of RM52.67 million and has filed an affidavit to this effect on May 30, 2025, Mudajaya said in a bourse filing on Wednesday.
Mudajaya also said it has received the first payment tranche, including interest, totalling RM27.33 million. The final tranche, amounting to RM27.9 million with interest, is expected by Aug 28. Once this payment is received, MCB will apply to the court to withdraw its winding-up petition against THB Power.
Of the remaining disputed balance of RM7.95 million, Mudajaya said MCB and THB Power will continue negotiations to find an amicable resolution. If they can't reach an agreement, MCB reserves the right to pursue a separate legal action against THB Power to recover this sum.
With the settlement, the court on Wednesday granted MCB's request to adjourn proceedings for its winding-up petition against THB, pending the receipt of the final payment from THB Power. The next court hearing is scheduled for Sept 12.
Mudajaya filed the winding-up petition against THB Power on Feb 21, claiming THB Power owes it RM60.63 million for preparation works MCB completed in June 2022 at a 1,200-megawatt gas-fired plant in Gurun, Kedah. The total contract value of the job was RM104.47 million. The winding-up petition followed an adjudication decision in April 2024 and a supplemental settlement agreement in October 2024, though specific details of these were not undisclosed.
THB Power, meanwhile, has on May 30 withdrawn its lawsuit against MCB, without the option to refile it. The lawsuit was filed on April 17 to seek a declaration from the court for a lesser payment of RM52.67 million to MCB, as opposed to the RM60.63 million that MCB sought.
Mudajaya shares closed unchanged at 9.5 sen on Wednesday, giving the group a market capitalisation of RM252.5 million.