PRG Holdings board terminates related-party debt settlement, initiates independent review

PETALING JAYA (June 19): PRG Holdings Bhd said its board has terminated a proposed debt settlement involving a related-party transaction and has initiated the process of appointing an independent reviewer, according to a media statement released via Bursa Malaysia yesterday.

The matter centres on RM37.17 million owed by Premier De Muara Sdn Bhd (PDM) to PRG's construction subsidiary, Premier Construction (International) Sdn Bhd (PCI), for work completed on the Picasso Residence project in Kuala Lumpur. Under a proposed settlement announced on April 23, 2026, PDM was to transfer 12 residential units valued at RM13.37 million as partial repayment, with the remaining balance to be negotiated separately.

The board resolved to terminate the settlement agreement. PRG made the necessary disclosures to Bursa Malaysia on May 19, after determining that the transaction constituted a related-party transaction.

PRG said the board, including each of its individual directors, was not aware of ownership developments relating to PDM at the time the settlement was proposed.

Upon identifying the related-party nature of the transaction, group managing director Andrew Chan Lim-Fai abstained from all deliberations and voting on the matter, participating only to provide factual information to the board, the company said.

On June 8, PRG issued a statutory demand to PDM requiring settlement of outstanding payments owed to PCI within 21 days. The media statement referenced the outstanding amount as relating to PCI's claims; The Edge Malaysia reported that the statutory demand covered RM64.24 million in outstanding payments, though PRG's statement did not provide a breakdown.

The board said it has initiated the process of appointing an independent reviewer, with the appointment to be placed under the purview of the Audit and Risk Management Committee.

PRG said it remains focused on recovering monies owed to PCI, ensuring compliance with Bursa Malaysia's listing requirements, and protecting shareholders' interests ahead of its Annual General Meeting on June 25.

Why it matters: The independent review appointment signals that the board is moving to address governance concerns raised by shareholders ahead of the June 25 AGM. The termination of the settlement and the statutory demand leave PDM's debt to PCI unresolved, with recovery outcome and AGM proceedings now the key near-term variables.

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