KUALA LUMPUR (Dec 21): Practice Note 17 company YFG Bhd said Atta Group Global Bhd has terminated a RM30 million construction contract that was offered to the group due to corporate and personal guarantee issues.
YFG said its subsidiary, YFG Engineering Sdn Bhd (YFGE), was served the notice of termination by Atta Group Global’s subsidiary, Sungguh Gemilang Development Sdn Bhd.
The contract was for the construction of 112 units of 14-storey apartments and eight units of three-storey terrace houses in Butterworth.
“The notice of termination was served to YFGE owing to corporate/personal guarantee issues which currently affect the progress and sub-contractor of the project on the part of Sungguh Gemilang,” YFG said in a filing with Bursa Malaysia.
On Dec 14, YFG announced that YFGE received a similar notice of termination by another Atta Group Global subsidiary, Atta Properties Sdn Bhd.
This RM40 million contract pertains to the construction of a 23-storey building in Jalan Sultan Azlan Shah, George Town featuring 62 apartments and 38 office units.
It was terminated due to “some legal and financial issues which currently affect the progress and sub-contractor of the project on the part of Atta Properties.”
YFG’s share price was last traded at half a sen, giving the group a small market capitalisation of RM3.045 million.
This article first appeared in The Edge Financial Daily, on Dec 21, 2018.
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