Ahmad Zaki Resources unit slapped with two more winding-up petitions over unpaid works

KUALA LUMPUR (July 13): Ahmad Zaki Resources Bhd (KL:AZRB) said its wholly-owned subsidiary Ahmad Zaki Sdn Bhd (AZSB) has been served with two more winding-up petitions over alleged unpaid claims totalling about RM1.78 million, adding to a string of similar legal actions against the unit over the past two years.

In a Bursa Malaysia filing on Monday, the engineering and construction group said petitions were served on AZSB last Friday (July 10) by solicitors acting for Tenaga Nirwana (M) Sdn Bhd and Muhibbah Engineering (M) Bhd (KL:MUHIBAH).

The petition by Tenaga Nirwana relates to a claim of RM1.46 million for works carried out under three projects: the Sungai Kuantan bridge project in Pahang, the East Klang Valley Expressway (EKVE) and the MRT V6 package.

Meanwhile, Muhibbah Engineering is claiming RM319,901.89 for works performed under the MRT2 Sungai Buloh-Serdang-Putrajaya line's V202 package.

AZRB said AZSB is not a major subsidiary and does not expect the petitions to have a material financial or operational impact on the group. The group’s total cost of investment in the subsidiary stands at RM165.3 million.

"AZSB is currently in discussions with the petitioners to negotiate for a prompt and harmonious resolution to this issue. The company holds a positive outlook, anticipating a successful resolution of the matter," AZRB said.

In January 2024, AZSB was served with a winding-up petition by Sukiada Engineering Sdn Bhd over an alleged unpaid sum of RM168,115.25. A month later, Formula Mutakhir Sdn Bhd filed another winding-up petition against the subsidiary, claiming an alleged outstanding amount of RM118,009.13.

In July 2025, Giga Engineering & Construction Sdn Bhd filed a winding-up petition over an alleged unpaid sum of RM5.86 million, which AZRB said it would contest while seeking a Fortuna injunction.

That was followed in November 2025 by two more petitions from Perunding ZKR Sdn Bhd and Mentari Kencana Sdn Bhd over alleged unpaid claims totalling RM5.31 million.

For the first quarter ended March 31, 2026 (1QFY2026), AZRB posted a net loss of RM1.66 million on revenue of RM154.75 million. The group has been loss-making in three of the past four financial years.

Its shares closed 0.5 sen or 4.76% lower at 10 sen on Monday, giving the company a market capitalisation of RM65.8 million.

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