KUALA LUMPUR (Dec 26): Gabungan AQRS Bhd is claiming RM89.74 million from Econpile Holdings Bhd for what it alleged was wrongful termination of a sub-contract under Package SUKE-CA3 of the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) project in 2016.
The sub-contract, worth RM389.07 million, was to complete the foundation for the SUKE project.
It was awarded by AQRS’ unit Gabungan Strategik Sdn Bhd (GSSB) to Econpile (M) Sdn Bhd (EMSB) and its joint venture (JV) partner China Communication Construction Company (M) Sdn Bhd (CCCC) back in December 2016.
However, in January 2022, CCCC issued a notice of termination to GSSB for fundamental breach and/or refusal to perform their fundamental obligations under the sub-contract, of which GSSB has accepted and reserved their rights to damages following the terminations.
Econpile noted that EMSB has completed its scope of work as stipulated in the JVA as of the date of the termination.
“CCCC and EMSB have submitted the final claim for the work done under the sub-contract amounting to RM485.93 million with a balance due amounting to RM143.38 million and requested payment thereof by way of their letter dated Nov 10, 2023 to GSSB,” Econpile said in its filing.
But GSSB is now seeking a damage and/or compensation in the sum of RM89.74 million or such other amount as assessed by the arbitral tribunal, jointly and severally from CCCC and EMSB with interest and costs.
The arbitration shall be conducted and administered by the Asian International Arbitration Centre (AIAC) with the seat of arbitration in Kuala Lumpur, Econpile said.
“Due to the preliminary status of the matter, the financial impact arising from the notice of arbitration is still being assessed and cannot be ascertained yet,” said Econpile.
Nonetheless, Econpile said that the arbitration is not expected to have any operational impact on the group, and assured that it will make the necessary announcements on further developments of the matter when necessary.
At market close on Tuesday, Econpile shares settled half a sen or 1.69% higher to 30 sen, valuing the group at RM418.16 million. The stock has risen over 80% year-to-date.
Meanwhile, Gabungan AQRS finished unchanged at 33.5 sen, with a market capitalisation of RM179.54 million.
Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!
Source: EdgeProp.my
POST YOUR COMMENTS