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KUALA LUMPUR (June 8): PRG Holdings Bhd’s (KL:PRG) unit has given Premier De Muara Sdn Bhd (PDM) — a company linked to its largest shareholder Datuk Ng Yan Cheng — 21 days to pay RM64.24 million in outstanding payments in relation to a completed construction project, failing which it will take action to wind up the company.
In a filing with Bursa Malaysia on Monday, PRG said its wholly-owned unit Premier Construction (International) Sdn Bhd (PCI) issued the statutory demand under Section 466(1)(a) of the Companies Act 2016 for certified construction works carried out for the Picasso Residence project in Kuala Lumpur.
PCI was appointed as the main contractor by PDM, the project developer, to undertake construction works on a 99-year leasehold parcel of land in Bandar Kuala Lumpur. The project, which has a land area of 14,307 square metres, has since been completed.
The group said it is seeking payment of RM64.24 million, which it claims is the outstanding amount due for works certified as completed. A breakdown on the sum owed was not provided.
The company noted that the project obtained its Certificate of Practical Completion in November 2025, and that remaining obligations relate mainly to defect liability works. It added that provisions and accruals have already been made based on management’s estimates for the financial year ended Dec 31, 2025.
As at the date of the announcement, the group has already recognised impairment losses of about RM50.3 million in prior years and RM13.7 million in the financial period ended March 31, 2026. It said a further impairment of around RM0.2 million may be required, subject to ongoing assessment and audit review.
The group added that it does not expect additional material losses beyond legal fees and recovery-related costs. Any future recovery of the outstanding amount may result in a reversal of impairment, depending on accounting standards.
The action follows the termination of a settlement agreement between PRG and PDM on May 19, 2026. The agreement was ended, among other reasons, because PDM failed to disclose its link to Ng and a court judgment against it, which affected its ability to fulfil its obligations.
Under the settlement, 12 high-rise residential units at Picasso worth RM13.37 million were to be transferred as partial payment for RM37.17 million owed by PDM.
PRG’s board terminated the agreement about four weeks after it was signed after discovering the undisclosed information.
Ng is PRG’s largest shareholder with a 16.45% interest in the group.
PRG’s share price closed down 5.26% to nine sen on Monday, valuing the company at RM44.1 million. Year to date, the stock is down 12.5%.