GDB secures preferred liquidators as 8 Conlay developer Damai City wound up

KUALA LUMPUR (July 16): GDB Holdings Bhd (KL:GDB) said its wholly owned subsidiary Grand Dynamic Builders Sdn Bhd (GDBSB) has been informed of the Shah Alam High Court’s order for 8 Conlay project developer Damai City Sdn Bhd (DCSB) to be wound up.

In a Bursa Malaysia filing on Wednesday, GDB said the winding-up order followed a petition filed by TSL Victory Sdn Bhd under the Companies Act 2016.

The High Court has also appointed Lim Tian Huat and Chiang Teng Guan of Rodgers Reidy & Co as joint liquidators of DCSB, following an application by GDBSB. The construction firm had appeared in the proceedings as a creditor to oppose the petitioner's proposed liquidator.

GDB said its solicitors are advising the company on the next course of action in relation to its ongoing legal proceedings against DCSB.

The winding-up marks the latest development in GDB's efforts to recover more than RM140 million in court-awarded claims against DCSB arising from construction works at the 8 Conlay mixed-use development in Kuala Lumpur.

GDB had previously secured High Court judgments to enforce adjudication awards totalling about RM141.9 million against DCSB. It also obtained a separate RM102.8 million judgment against DCSB's parent KSK Land Sdn Bhd over a corporate guarantee, although the company has appealed the decision.

The recovery process remains uncertain as KSK Land is under liquidation and has appealed against the High Court judgement.

GDB’s shares closed up 2.97% to 52 sen on Wednesday, valuing the company at RM536.3 million. Year to date, the stock is up 42.47%.

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