Ahmad Zaki Resources unit gets winding-up petition over RM5.86 mil payment dispute

• According to AZRB's bourse filing, Giga Engineering is claiming that its wholly owned Ahmad Zaki Sdn Bhd (AZSB) had failed to settle the sum, which led to the initiation of the winding-up proceedings.

KUALA LUMPUR (July 9): Ahmad Zaki Resources Bhd (KL:AZRB) said on Wednesday that one of its subsidiaries has been served with a winding-up petition by Giga Engineering & Construction Sdn Bhd over an alleged unpaid sum of RM5.86 million.

According to AZRB's bourse filing, Giga Engineering is claiming that its wholly owned Ahmad Zaki Sdn Bhd (AZSB) had failed to settle the sum, which led to the initiation of the winding-up proceedings.

AZRB, which is involved in engineering and construction, besides property development and concession management, is disputing the claim and has instructed its solicitors to stay and contest the petition. The company plans to seek a Fortuna Injunction—a court order to restrain winding-up proceedings on the basis that the debt is genuinely disputed.

AZRB said AZSB is not considered a major subsidiary. As such, the group does not anticipate any financial or operational impact arising from the petition, save for legal fees and disbursements.

AZRB’s total cost of investment in AZSB stands at RM165.3 million.

AZRB shares closed two sen or 9.52% higher at 23 sen on Wednesday, giving the company a market capitalisation of RM151.28 million.

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