Kerjaya Prospek Group Bhd (Kerjaya Prospek) said in a Bursa filing today (Nov 23) that its wholly-owned subsidiary, Kerjaya Prospek (M) Sdn Bhd (KPM) enforces its right to recover he pre-agreed damages pursuant to clause 14 of the LA.
“(Clause 14) stated that in the event of pre-determination of the letter of award or contract or any contract and or agreement by BCM Holdings Sdn Bhd (BCM), BCM shall irrevocably and immediately compensate and pay KPM a termination damages for a sum of RM20 million,” it said.
It was reported on Nov 21, Kerjaya Prospek’s RM404.35 million job from BCM Holdings Sdn Bhd, which is a subsidiary of EcoFirst Consolidated Bhd, to build a main residential building has fallen through after BCM decided not to proceed with the contract previously agreed upon between both parties.
The group said the solicitor has written to BCM requiring the group to make the payment within 7 days from Nov 21, failing which legal action shall be commenced against BCM.
“Save and except for the potential impact on the existing order book of the group and a one-off gain of RM20 million in termination damages from BCM, the letter is not expected to have other material financial impact on the company and the group for the financial year.”
Kerjaya Prospek has said it has not commenced any contract work to-date on Nov 21, but said it will be taking necessary steps under the letter of award (LOA) after advice from its solicitors “to enforce its right to recover the pre-agreed damages payable stated in the LOA, which is due and payable by BCM to KPM”.
