KUALA LUMPUR (Nov 6): Encorp Bhd's indirect wholly-owned subsidiary Encorp Iskandar Development Sdn Bhd (EIDSB) has served a notice of arbitration against Konsortium Ipmines Merz Sdn Bhd (KIMSB), seeking RM11.76 million in liquidated damages for KIMSB's delay to complete a project in Johor.

EIDSB had appointed KIMSB as the main contractor to build 571 units of serviced apartments in Johor.

EIDSB is also seeking claims of RM163,500 for direct payment to sub-contractors, and RM13.08 million for cost in rectifying the defective works and completing the outstanding works.

EIDSB is also asking KIMSB to pay loss of profit for the delay of the works, financing charges and/or interest charges on the monies spent on third party contractors, as well as to review and set aside the architect’s decisions and certifications. It is also seeking all cost and expenses incurred and general damages.

"Pending outcome of the arbitrator’s decision, it is too preliminary at this stage to ascertain the potential financial gain or loss that could arise from the arbitration. This arbitration does not have any material financial impact on the Encorp Group for the time being," said Encorp in a bourse filing today.

"The company will make the necessary announcements on material development in respect of this matter from time to time," it added.

Encorp shares were untraded today. They last closed at 38 sen, bringing a market capitalisation of RM116.31 million.

 

Click here for more property stories.

SHARE
RELATED POSTS
  1. Johor welcomes federal govt's move to amend MM2H programe conditions
  2. Kumpulan Jetson's unit receives arbitration notice related to RM88m job awarded five years ago
  3. Property sales hit fresh record RM196.8 bil in 2023; Johor sees highest price rise, says Napic