Unitrade Industries Berhad has initiated winding-up proceedings against Real Steel Sdn Bhd (RSSB) through its wholly-owned subsidiary, Syarikat Logam Unitrade Sdn Bhd (SLU), over an outstanding debt exceeding RM4.23 million.
In a filing to Bursa Malaysia, the group said SLU had on April 7 presented a winding-up petition in the High Court of Malaya in Johor Bahru, citing RSSB’s failure to settle outstanding payments arising from the supply of goods in the ordinary course of business.
The claim includes RM4.24 million owed as at April 7, inclusive of late payment charges and legal costs, as well as interest of 1.5% per month on a principal sum of RM4.12 million from April 8 until full settlement.
The legal action follows RSSB’s breach of a settlement agreement signed on March 19, under which the company had acknowledged a debt of RM4.61 million and agreed to repay RM4.63 million in 10 monthly instalments through December 2026.
However, RSSB defaulted on its first instalment of RM1.10 million due on March 19. While the company initially issued a cheque, it was later dishonoured on March 26. A subsequent partial payment of RM512,276.86 made on April 1 was insufficient to rectify the default.
“Given the breach, SLU has proceeded with a fresh winding-up petition and will withdraw the earlier petition filed in March,” UIB said.
The group added that it believes RSSB is unable to pay its debts, prompting the latest legal move under provisions of the Companies Act 2016.
Despite the action, UIB noted that the financial exposure has already been fully impaired in its accounts for the financial period ended December 31, 2025. As such, the winding-up proceedings are not expected to have any additional material impact on the group’s financial position, aside from legal costs.
Looking ahead, the company said that upon securing a court order and the appointment of a liquidator, RSSB’s assets would be realised in an effort to recover the outstanding sums.
