KUALA LUMPUR (July 21): PRG Holdings Bhd (KL:PRG) has initiated winding-up proceedings against property developer Premier De Muara Sdn Bhd (PDM) — a company linked to its largest shareholder Datuk Ng Yan Cheng —  over alleged RM64.24 million in unpaid construction bills.

In a bourse filing on Monday, PRG said its indirect wholly-owned subsidiary Premier Construction (International) Sdn Bhd (PCI) filed the petition against PDM at the High Court.

The RM64.24 million claim stems from works awarded to PCI as the main contractor for the Picasso Residence, a residential project located on a 14,307-square-metre plot in Kuala Lumpur. Construction has been completed and the project received its certificate of practical completion in November 2025.

The court action follows PRG's decision to terminate a settlement agreement with PDM on May 19 this year, barely four weeks after it was signed, citing PDM's failure to disclose ties to Ng and a prior court judgement that hindered PDM's ability to fulfil its obligations.

Under the aborted settlement, PDM was supposed to transfer 12 high-rise residential units at Picasso Residence worth RM13.73 million as partial payment for the debt owed to PRG.

Ng is currently PRG’s largest shareholder with a 16.9% interest.

PRG said the petition is not expected to have any material operational or financial impact on the groups save for legal fees, as the construction works have already concluded. It had also previously recognised impairment losses of approximately RM64 million on the amount owed by PDM.

“Should any portion of the debt be recovered, the company will assess the reversal of the impairment losses in accordance with the applicable accounting standards,” it added.

In a separate bourse filing, PRG said PCI had on Monday (July 20) been served with a winding-up petition filed by Summit Leap Sdn Bhd over an alleged outstanding payment of RM352,105.87 for facade cladding works for the same Picasso Residence project.

PRG said it is seeking legal advice to review the petition and determine its next course of action, noting, however, that it does not expect this petition to have any significant financial or operational impact on the group.

PRG, formerly known as Furniweb Industrial Products Bhd, is involved in property development, construction and the manufacturing of yarn products

On Monday, PRG's share price closed up 3.85% or half a sen to 13.5 sen, valuing the company at RM66 million. Year to date, the stock has jumped nearly 70% from eight sen.