PRG’s RM64m dispute with shareholder-linked PDM comes to a head as court orders winding-up

Thursday 24 Sep 2026

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KUALA LUMPUR (Sept 23): The increasingly tangled dispute at PRG Holdings Bhd (KL:PRG) has reached another turning point, with the High Court ordering Premier De Muara Sdn Bhd (PDM) to be wound up.

This following legal action by PRG’s construction arm over more than RM64 million in outstanding payments.

According to a filing with Bursa Malaysia, the Kuala Lumpur High Court on Wednesday granted the orders sought by Premier Construction (International) Sdn Bhd (PCI), an indirect wholly-owned subsidiary of PRG, including the winding-up of PDM under the Companies Act 2016.

The court also appointed Ng Choon Jin of S L Ng Corporate Solutions PLT as liquidator of PDM and ordered costs of RM5,000 to be paid to PCI from PDM’s assets, subject to the allocatur fee.

The winding-up proceedings stem from a long-running payment dispute over the Picasso Residence project in Kuala Lumpur, which was developed by PDM and for which PCI was the main contractor. The project obtained its Certificate of Practical Completion in November 2025.

PRG had initially sought to settle part of the debt through an agreement under which PDM would transfer 12 units at Picasso Residence to PCI. The proposed settlement was subsequently terminated in May after PRG said it had discovered that PDM was linked to its largest shareholder, Datuk Ng Yan Cheng, and that the relationship had not been disclosed during negotiations. PRG also cited PDM’s failure to fulfil its obligations under the settlement and an undisclosed court judgment against the developer.

Following the termination, PCI issued a statutory demand seeking RM64.24 million in outstanding payments for certified construction works. PRG subsequently said it would commence winding-up proceedings against PDM if the amount was not settled.

The dispute then widened beyond the developer and construction subsidiary, spilling into PRG’s boardroom and shareholder ranks.

PRG’s second-largest shareholder with an 8.14% interest, Datuk Sheah Kok Fah, called for an independent review of transactions between PCI and PDM and made attempts to remove then group managing director Andrew Chan Lim-Fai, who is Ng’s son-in-law. Chan subsequently stepped down from his positions.

Ng, who holds a 16.6% stake in PRG, subsequently demanded RM21.22 million from PRG, relating to shareholder advances he had previously provided as working capital. He later filed a separate petition seeking to wind up PRG after restructuring discussions over the amount failed.

PRG responded by applying for judicial management in August, seeking a corporate rescue mechanism and a moratorium against legal actions. The High Court subsequently placed the group under interim judicial management, appointing Baker Tilly Insolvency PLT’s Andrew Heng and Ashvin Mahendran as interim judicial managers.

The interim order also specifically required court approval before the judicial managers could compromise, settle, discontinue or dispose of PCI’s winding-up proceedings against PDM.

To date, there has been no update on the independent review by PKF Covenant Equity Consulting Sdn Bhd of the transactions between PCI and PDM commissioned in July.

Edited ByPresenna Nambiar

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