GDB Holdings Bhd has filed a lawsuit against KSK Land Sdn Bhd to recover the RM102.076 million that the builder alleges is owed by the developer’s unit for the 8 Conlay mixed development in Kuala Lumpur,
Grand Dynamic Builders Sdn Bhd (GDBSB), a wholly owned subsidiary of GDB, filed a writ of summons and statement of claim against KSK at the High Court on May 12, 2023.
It told the stock exchange yesterday that the circumstances leading to the filing of the writ of summons and statement of claim by GDBSB is based on, inter alia, the sum of RM102.076 million (outstanding sums) being due and payable to GDBSB by KSK, who had in the capacity of Damai City Sdn Bhd’s (DCSB) holding company, executed a corporate guarantee in favour of GDBSB on Aug 5.
GDBSB contends that KSK was in breach of its obligations under the corporate guarantee, and/or in law when the developer failed, refused, and/or neglected to honour the corporate guarantee and effect payment of the outstanding sum.
This also comes after KSK terminated GDBSB as its contractor for the 8 Conlay project.
DCSB awarded GDBSB a RM1.25 billion contract in 2020 to complete the construction of the 8 Conlay complex, which would have the largest “twisted” twin tower dwelling in the world. 8 Conlay is a luxury mixed-use development comprising a four-storey retail block, the Kempinski Hotel in Malaysia, and two residential towers, and have a gross development value of RM5.4 billion.
But in August 2022, GDBSB gave DCSB a notice of suspension and stopped all project activity.
KSK said in a statement back then that the decision to terminate the contract between DCSB and GDBSB, follows a failure to achieve “agreeable solutions to various disputes”.
“(These issues were in relation to) construction site matters over a period of the last nine months, including scope of work, construction programme, and financial instalment payments following the Covid-19 pandemic,” it said.
Just a month before that, KSK refuted claims that the group was having financial issues and said that it remained “financially strong with sufficient resources to ensure the completion of the 8 Conlay project”.