Ahmad Zaki Resources Bhd (AZRB) has reached an amicable settlement with AmBank (M) Bhd and AmBank Islamic Bhd over legal claims totalling approximately RM69.3 million arising from payment defaults by its wholly-owned subsidiary, Ahmad Zaki Sdn Bhd (AZSB).
The construction and engineering group disclosed that both banks had initiated civil proceedings against AZSB as the principal debtor and AZRB as the guarantor following a payment default on June 25, 2025.
The company attributed the default to temporary cash flow constraints experienced by AZSB, which affected its ability to fulfil repayment obligations under several banking facilities.
AmBank Islamic had filed a suit at the Kuala Lumpur High Court seeking RM30.84 million in outstanding payments relating to Cashline-i, RC-i and STF-i facilities.
Separately, AmBank (M) Bhd commenced legal action to recover RM38.46 million owed under RC1 and RC2 financing facilities.
The two claims amounted to a combined RM69.30 million.
AZRB said it had immediately initiated discussions with both banks upon receiving the lawsuits, with the aim of resolving the disputes amicably.
Following negotiations, the parties reached a settlement, resulting in consent judgments being entered in April 2026.
According to the filing, the consent judgments were recorded on April 16 and April 20, 2026, respectively.
The company disclosed the legal proceedings retrospectively pursuant to Paragraph 9.19A of Bursa Malaysia’s Main Market Listing Requirements.
AZRB said the settlement had resolved the legal disputes involving the outstanding banking facilities.
However, the announcement did not disclose the financial terms of the settlements, including the repayment arrangements or whether the original amounts claimed had been revised.
Despite the sizeable claims, AZRB said it does not expect the legal proceedings to have any material adverse impact on its business, financial position or operations.
