AZRB subsidiary served with winding-up petition for allegedly failing to pay debt

• AZRB said, however, that AZSB is not a major subsidiary of the company and that it does not anticipate any financial and operational impact due to the filing of the petition.

KUALA LUMPUR (Jan 26): Ahmad Zaki Sdn Bhd (AZSB), a wholly-owned subsidiary of engineering and construction group Ahmad Zaki Resources Bhd (AZRB), has been served with a winding-up petition by Sukiada Engineering Sdn Bhd (SESB) for allegedly failing to settle an outstanding amount of RM168,115.25 excluding interest as at June 30, 2023.

AZRB said, however, that AZSB is not a major subsidiary of the company and that it does not anticipate any financial and operational impact due to the filing of the petition.

"Save for the legal fees and disbursements involved, the AZRB Group does not expect to incur losses arising from the petition," the group said in a filing with Bursa Malaysia on Friday.

AZRB clarified that at the point of the petition being served, ongoing negotiations were taking place between the group and SESB to reach a mutually acceptable resolution. 

Additionally, AZRB considers the outstanding sum claimed by SESB through the winding-up proceeding as not a material debt.

"We are currently negotiating with SESB to resolve the matter amicably. We are confident of resolving this matter as soon as possible," it said.

AZRB has been loss-making for four financial years since the 12 months ended June 2020 (FY2020) up until FY2023.

In 1QFY2024, AZRB booked losses of RM20 million, narrower than RM27.9 million recorded in 1QFY2023. Quarterly revenue rose 40.77% to RM105.3 million, from RM74.8 million.

As at end-September 2023, AZRB had cash of RM268.37 million, against borrowings of RM3.04 billion. It also carried negative equity reserves of RM139.67 million.

Shares in AZRB closed half a sen or 2.27% higher at 22.5 sen, giving the group a market capitalisation of RM147.99 million.

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