UEM Edgenta drops winding-up petition against Ahmad Zaki Resources’ unit

• AZSB is to pay the monthly instalments to UEM Edgenta’s wholly owned Edgenta Propel Bhd (EPB) from March 31, 2023, to Jan 31, 2024, together with interest from the original date of payment stated in a consent judgement.

KUALA LUMPUR (Jan 30): UEM Edgenta Bhd’s unit has withdrawn its winding up petition against Ahmad Zaki Resources Bhd (AZRB)’s wholly owned Ahmad Zaki Sdn Bhd (AZSB) after the pair mutually agreed that AZSB would settle an RM11.05 million outstanding sum by way of 11 monthly instalments.

AZSB is to pay the monthly instalments to UEM Edgenta’s wholly owned Edgenta Propel Bhd (EPB) from March 31, 2023, to Jan 31, 2024, together with interest from the original date of payment stated in a consent judgement, according to UEM Edgenta’s filing on Friday (Jan 27).

“In the event AZSB fails, neglects and/or defaults in making any of the instalment payments together with interest, EPB shall be entitled to take such steps as may be necessary against AZSB, to enforce or execute the consent judgement,” the asset management and infrastructure solutions company added.

The outstanding sum relates to a sub-contract work for the protection and relocation of utilities that EPB awarded to AZSB under the Klang Valley Mass Rapid Transit Putrajaya Line (MRT2) project in 2016.

In April 2021, AZSB sued EPB for RM23.75 million in liquidated ascertained damages and for RM1.85 million in cost difference incurred by AZSB, in engaging a third-party replacement sub-contractor to complete the works.

A month later, EPB followed with a counterclaim of RM10.6 million against AZSB on the grounds that AZSB had breached the sub-contract when it had, among others, failed/neglected or refused to make full payment on EPB's certified claims for work done, and caused delays for the works.

Subsequently, a consent order was recorded in the High Court on July 27, 2022, whereby the parties mutually agreed, among others, that AZSB would pay EPB a sum of RM10.65 million via ten monthly instalments from Nov 30, 2022, to Aug 31, 2023. AZSB would also pay EPB RM400,321 on or by Sept 30, 2023.

AZSB, however, failed to make the first monthly instalment payment due on Nov 30, 2022, which led to EPB filing the winding-up petition against AZSB.