ENCORP

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MATERIAL LITIGATION ENCORP BERHAD ("Encorp" or "the Company") - Commencement of Arbitration Proceeding by Encorp Iskandar Development Sdn Bhd ("Claimant") against Konsortium Ipmines Merz Sdn Bhd ("Respondent")

ENCORP BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
ENCORP BERHAD ("Encorp" or "the Company")
- Commencement of Arbitration Proceeding by Encorp Iskandar Development Sdn Bhd ("Claimant") against Konsortium Ipmines Merz Sdn Bhd ("Respondent")

The Board of Directors of Encorp wishes to announce that Encorp Iskandar Development Sdn Bhd (“EIDSB”), a wholly-owned subsidiary of Encorp Must Sdn Bhd, which in turn is a wholly-owned subsidiary of Encorp, has on today, served a Notice of Arbitration dated 6 November 2019 on Konsortium Ipmines Merz Sdn Bhd (“KIMSB”) to refer EIDSB’s claims on liquidated damages in respect of KIMSB's delay to complete the Project to arbitration, pursuant to the provisions of the Conditions of Contract.

 

EIDSB is the employer who has awarded KIMSB, the main contractor for building works construction project known as “Cadangan Pembangunan Pangsapuri Servis (571 Unit) Dan Ruang Niaga Yang Mengandungi: A) i) 1 Blok Podium 7 Tingkat Yang Terdiri Daripada: 1 Tingkat Bawah Lobi Utama Dan Ruang Perniagaan & 6 Tingkat Tempat Letak Kereta; ii) 1 Blok Pangsapuri Servis (Menara 1) 23 Tingkat (199 Unit) Berserta Dengan Kemudahan Rekreasi; B) i) 1 Blok Pangsapuri Servis 35 Tingkat (372 Unit) Yang Terdiri Daripada: 1 Tingkat Bawah Lobi Utama Dan Ruang Perniagaan, 4 Tingkat Lobi Utama Dan Ruang Servis & Pangsapuri Servis (Menara 2a) 30 Tingkat (364 Unit) Berserta Dengan Kemudahan Rekreasi; ii) 1 Blok Pangsapuri Servis (Menara 2b) 4 Tingkat (8 Unit) Berserta Dengan Kemudahan Rekreasi Di Atas Lot PTD 166961, Mukim Pulai, Daerah Johor Bahru, Johor Darul Takzim” (“Project”).

 

The arbitration proceeding is commenced against KIMSB to seek, among others, the following relief:

 

(a)  EIDSB’s claim of RM11,760,000.00 for liquidated damages;

 

(b)  EIDSB’s claim of RM163,500.00 for direct payment to sub-contractors;

 

(c)  EIDSB’s claim of RM13,084,610.00 for cost in rectifying the defective works and completing the outstanding works;

 

(d)  In the alternative to (a), (b) & (c) above, such other amount as assessed by the Arbitrator;

 

(e)  Loss of profit for the delay of the works;

 

(f)  Financing charges and/or interest charges on the monies spent on third party contractors;

 

(g)  Opening up, review, revision and setting aside the architect’s decisions and certifications;

 

(h)  All cost and expenses incurred including solicitors’ cost on an indemnity and party to party basis, interest and taxes; and

 

(i)  General damages.

 

Pending outcome of the Arbitrator’s decision, it is too preliminary at this stage to ascertain the potential financial gain or loss that could arise from the arbitration. This arbitration does not have any material financial impact on the Encorp Group for the time being.

 

None of the directors and/or major shareholders of Encorp and/or persons connected with them has any interest, direct or indirect in the aforesaid arbitration proceeding.

 

The Company will make the necessary announcements on material development in respect of this matter from time to time.

 

This announcement is dated 6 November 2019.






Announcement Info

Company Name ENCORP BERHAD
Stock Name ENCORP
Date Announced 06 Nov 2019
Category General Announcement for PLC
Reference Number GA1-05112019-00063