- The lawsuit was filed by Proventus Bina — a wholly-owned subsidiary of CIC Construction Sdn Bhd, which in turn is a wholly-owned subsidiary of CGB — against Tang Kae Shih, who acts as a surety on behalf of the project’s main contractor Simbol Era Sdn Bhd.
KUALA LUMPUR (Sept 20): Central Global Bhd’s (CGB) wholly-owned unit Proventus Bina Sdn Bhd has commenced a legal suit against Tang Kae Shih for outstanding payments related to a residential apartment contract in Penang worth RM42.24 million.
The lawsuit was filed by Proventus Bina — a wholly-owned subsidiary of CIC Construction Sdn Bhd, which in turn is a wholly-owned subsidiary of CGB — against Tang Kae Shih, who acts as a surety on behalf of the project’s main contractor Simbol Era Sdn Bhd.
Proventus Bina is seeking an outstanding sum of RM7.23 million with an interest rate of 10% per annum from the due dates starting Feb 8, 2021 until May 31, 2021.
It is also seeking costs on a full indemnity basis against Tang and further relief the court deems fit and proper.
Proventus Bina accepted a letter of award (LOA) from Simbol Era to build the 24-floor residential apartment in Penang in March 2020,
“Pursuant to a personal guarantee dated April 28, 2021, which has been executed by defendant [Tang Kae Shih] has among others, irrevocably and unconditionally undertaken to pay the plaintiff [Proventus Bina] (as principal debtor and not merely as surety) for any debt due and payable by the main contractor [Simbol Era] to the plaintiff for the works performed by the plaintiff in relation to the project,” CGB said in its filing.
The industrial tape and label stock maker added that the suit is not expected to have any material operational impact on the group.
Shares in Central Global, which has risen almost three times year-to-date, settled up one sen or 0.4% to RM2.48 on Wednesday, giving it a market capitalisation of RM399.23 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)!
TOP PICKS BY EDGEPROP
Rancangan Perumahan Rakyat Kota Samarahan
Kota Samarahan, Sarawak