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MATERIAL LITIGATION Mudajaya Group Berhad ("Mudajaya") ("The Company") - In The Matter of An Adjudication between Mudajaya Corporation Berhad against CMC Machipex Sdn Bhd

MUDAJAYA GROUP BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
Mudajaya Group Berhad ("Mudajaya") ("The Company")
-  In The Matter of An Adjudication between Mudajaya Corporation Berhad against CMC Machipex Sdn Bhd

We refer to our announcement dated 26 January 2016. Mudajaya Corporation Berhad (“MCB”), a wholly-owned subsidiary of the Company commenced Adjudication Proceedings under Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) against CMC Machipex Sdn Bhd (“CMC”) on 30 October 2015 for the principal sum of RM175,326,914.34 and together with late payment interest and cost.

MCB had submitted to CMC, its payment claim for works done and due to non-payment by CMC and disputes arising from the payment claims. This claim by MCB was proceeded with the Adjudication Claim under Section 5 of the CIPAA. CMC admitted some of the claims and in turn, made a counter claim in the form of a set-off in the amount of RM61,764,311.85.

MCB intends to pursue this claim matter in accordance to the provisions of the subcontract agreement which includes negotiations via Dispute Adjudication Board and arbitration.

The decision of the Adjudicator will have a negative impact of RM98.35 million on the earnings of the Mudajaya Group for the financial year ended 31 December 2016 as the said amount had been recognised as revenue in prior years.

The Company will make the necessary announcement to Bursa Malaysia Securities Berhad as and when there is a material development on the matter.

 

This announcement is dated 16 January 2017.

 






Announcement Info

Company Name MUDAJAYA GROUP BERHAD
Stock Name MUDAJYA
Date Announced 16 Jan 2017
Category General Announcement for PLC
Reference Number GA1-16012017-00069




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