PRG Holdings Berhad’s wholly owned construction subsidiary has received a fresh statutory demand from a subcontractor over an alleged outstanding payment of RM1.61 million related to the Picasso Residence project in Kuala Lumpur.
The group said Premier Construction (International) Sdn Bhd (PCI), a wholly owned subsidiary of PRG Construction Sdn Bhd, was served with the statutory demand on July 30 by Messrs Vin Law Co., acting on behalf of EKL Metal Sdn Bhd.
The demand, issued under Sections 465(1)(e) and 466(1)(a) of the Companies Act 2016, seeks payment of RM1,614,804.42 for the supply, delivery and installation of aluminium glazing works carried out by EKL for the Picasso Residence development.
The latest demand replaces an earlier statutory demand issued on June 10, which sought RM3.63 million. PRG had previously disclosed receipt of that demand in a Bursa filing on June 12.
PCI was appointed as the main contractor for the Picasso Residence project by Premier De Muara Sdn Bhd, the project’s developer.
Under the Companies Act, if PCI fails to settle, secure or reach a satisfactory compromise on the claimed amount within 21 days of receiving the statutory demand, EKL may initiate winding-up proceedings against the company.
PRG said the statutory demand is not expected to have any material operational impact on the group.
The company added that, based on its preliminary assessment and accounting records, it does not expect the claim to result in any material additional losses beyond liabilities already recognised in PCI’s books.
To address the matter, PRG said it is seeking legal advice to review the validity of the claim and has begun appointing legal and accounting advisers to evaluate the group’s financial position and explore restructuring options in light of the potential insolvency issues arising from the statutory demand.
The group also said PCI is engaging with EKL Metal in an effort to resolve the dispute amicably and will make further announcements should there be any material developments.
