Ho Hup unit gets winding-up petition from IRB over RM24 mil tax arrears

• Ho Hup slipped into Practice Note 17 (PN17) status in April after BJD defaulted on RM112.69 million in loan facilities, for which Ho Hup is the guarantor.

KUALA LUMPUR (July 10): Ho Hup Construction Company Bhd (KL:HOHUP) has been served with a winding-up petition by the Inland Revenue Board (IRB) over tax arrears amounting to RM23.72 million.

The petition was issued to its wholly owned subsidiary Bukit Jalil Development Sdn Bhd (BJD), Ho Hup said in a filing with Bursa Malaysia.

It said BJD was unable to meet its tax obligations or the year of assessment 2019 within the prescribed timeline due to prolonged cash flow constraints.

Ho Hup added that BJD is not considered a major subsidiary, having posted a loss after tax of RM33.33 million, compared with the group’s net loss of RM84.47 million for the financial year ended Dec 31, 2023.

The group’s total investment in BJD stands at RM15 million.

Ho Hup said BJD was placed under creditors’ voluntary liquidation on May 23, with Baker Tilly Insolvency PLT confirmed as the liquidator at a creditors' meeting on June 13.

As such, it said the winding-up petition filed by the IRB is not expected to have any financial or operational impact on the group, as BJD has ceased operations and is no longer part of the group’s core business activities.

Ho Hup slipped into Practice Note 17 (PN17) status in April after BJD defaulted on RM112.69 million in loan facilities, for which Ho Hup is the guarantor. The company has been in the red for four consecutive years since 2021.

Shares of Ho Hup closed unchanged at five sen on Thursday, giving the group a market capitalisation of RM23.75 million.

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