Eco First Consolidated Berhad has informed that its wholly-owned subsidiary, BCM Holdings Sdn Bhd had been served a writ of summon by Kerjaya Prospek for RM20 million.
The text you provided seems to be a legal document, which appears to be written in a formal language. However, based on my understanding, here’s a simplified version of the text:
BCM issued a Letter of Award on 8 June 2023, followed by a Supplementary Letter of Award on 15 June 2023, to Kerjaya Prospek for a contract worth a total of RM404 million. The contract was for the main building and external works for a proposed residential development project. However, on 15 November 2023, BCM sent a letter to KPM informing them that they are no longer bound by the terms of the contract and have withdrawn it.
Kerjaya Prospek enforced its right to recover pre-agreed damages under the contract. The contract states that if BCM pre-determines the letter of award or contract or any contract and/or agreement, BCM shall immediately compensate and pay KPM a termination damages of RM20 million.
ECB stated that if the Writ is proceeded, there will be an outflow of cash funds as per the amount claimed.
As for now the group and BCM are contesting the matter.