Reference is made to the Company's announcements dated 19 May 2026, 8 June 2026 and 9 July 2026 in relation to the termination of the Settlement Agreement ("Announcements"). Unless otherwise defined, the definitions set out in the Announcements shall apply herein.
Pursuant to Paragraph 9.19(19) of the Main Market Listing Requirements of Bursa Securities Malaysia Berhad, the Board of the Company wishes to announce that, Premier Construction (International) Sdn Bhd ("PCI" or "Petitioner"), a wholly-owned subsidiary of PRG Construction Sdn Bhd, which in turn is a wholly owned subsidiary of PRG, had on 20 July 2026, through its solicitors, Messrs. Marcus Lee, filed a petition against Premier De Muara Sdn Bhd ("PDM" or "Respondent") in High Court of Malaya at Kuala Lumpur, pursuant to Section 465(1)(e) of the Companies Act 2016 ("Petition").
1. Details of claims under the Petition
The Petition was filed against the Respondent in respect of the outstanding amount due and owing to PCI totaling RM64,240,574.90 ("Debt") arising from the contractual sum for the works awarded to and completed by PCI and certified by the architect in relation to the property development project known as Picasso Residence ("Project").
PCI was appointed as the main contractor for the Project by the Respondent, the developer, to carry out construction activities on a parcel of development land with a leasehold interest for 99 years expiring on 17 February 2108 and held under title no. Pajakan Negeri 52579, Lot 20010 Seksyen 88, Bandar Kuala Lumpur, Daerah Kuala Lumpur, State of Wilayah Persekutuan Kuala Lumpur with title land area measuring 14,307 square metres.
The Respondent had failed, refused and/or neglected to pay or satisfy the Debt or to make any offer to PCI to secure or compound for it to the reasonable satisfaction of PCI despite the Statutory Demand pursuant to Section 466(1)(a) of the Companies Act 2016 served to the Respondent on 8 June 2026, and PCI therefore contends that the Respondent is unable to pay the Debt and should therefore be wound-up under Section 465(1)(e) of the Companies Act 2016.
2. Financial and Operational Impact/Expected Losses, If any
The Petition is not expected to have any material operational impact on the Group as the construction works for the Project have been completed and the Certificate of Practical Completion was obtained in November 2025. The remaining obligations relating to the Project are primarily defect liability works, for which the Group has made the necessary accruals and provisions based on Management's best estimate in the financial statements for the financial year ended 31 December 2025.
Save for legal fees and other incidental costs associated with the winding-up proceedings, the Company does not expect the filing of the Petition, in itself, to result in any additional material financial losses to the Group.
As at 31 March 2026, the Group had recognised impairment losses of approximately RM64.0 million in respect of the amount due from PDM. The ultimate financial impact of the Petition will depend on the outcome of the winding-up proceedings and the recoverability of the Debt. Should any amount of the Debt be successfully recovered, the Company will assess the reversal of the impairment losses in accordance with the applicable accounting standards.
3. Steps taken/proposed to be taken
PCI's appointed solicitors, Messrs. Marcus Lee, will proceed to serve the Petition on PDM.
The Company will continue to monitor the progress of the winding-up proceedings and will make further announcements on any material developments in due course.
This announcement is dated 20 July 2026.