PRG unit seeks to wind up Picasso Residence developer over RM64.24m debt, faces separate subcontractor petition

PETALING JAYA (July 21): PRG Holdings Bhd’s wholly-owned subsidiary Premier Construction (International) Sdn Bhd (PCI) has filed a winding-up petition against Picasso Residence developer Premier De Muara Sdn Bhd (PDM) to recover an outstanding debt of RM64.24 million, while separately being served with a winding-up petition by a subcontractor involved in the same project over an alleged outstanding payment of RM352,105.87.

The company made the disclosures in two separate Bursa Malaysia filings on Monday.

PCI filed the petition against PDM in the High Court of Malaya in Kuala Lumpur on July 20 under Section 465(1)(e) of the Companies Act 2016, alleging that the developer failed to settle amounts due for construction works completed at the Picasso Residence project in KL.

According to PRG, the RM64.24 million claim relates to contractual sums for works awarded to and completed by PCI, which were certified by the project architect. PCI had served PDM with a statutory demand on June 8, after which it contended that PDM was unable to pay its debts, and subsequently filed the winding-up petition.

PCI was appointed as the main contractor for Picasso Residence, a development on a 14,307 sq m (153,999 sq ft) leasehold site in KL. PRG said construction works for the project had been completed, with the Certificate of Practical Completion obtained in November 2025.

The group said the petition against PDM is not expected to have any material operational impact on the group as the remaining obligations relating to the project are primarily defect liability works, for which necessary accruals and provisions had been made in the financial statements for the financial year ended Dec 31, 2025.

As at March 31, PRG had recognised impairment losses of approximately RM64 million in respect of amounts due from PDM. The company said the ultimate financial impact of the proceedings would depend on the outcome of the winding-up petition and the recoverability of the debt.

Should any amount be successfully recovered, PRG said it would assess whether a reversal of the impairment losses is required in accordance with applicable accounting standards.

Separate petition against PCI

In a separate filing, PRG said PCI was served on July 20 with a winding-up petition filed by Summit Leap Sdn Bhd on July 14 in the High Court of Malaya in KL.

Summit Leap alleged that PCI had failed to settle an outstanding payment of RM352,105.87 for facade cladding works completed for the Picasso Residence project, following a statutory demand served on PCI on June 10.

The petition seeks to wind up PCI under Section 465(1)(e) of the Companies Act 2016 and includes an application for the appointment of an Official Receiver as liquidator.

PRG said PCI is not a major subsidiary of the group, with its total investment cost in the company amounting to RM750,000. The group does not anticipate any significant financial or operational impact arising from the petition, apart from legal fees and related disbursements.

PRG said it and PCI are seeking legal advice and reviewing the petition to determine the appropriate course of action. The group will make further announcements on any material developments.

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PRG Holdings seeks to wind up firm linked to largest shareholder over RM64m project dispute

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