Reference is made to the announcement on 28 March 2019 in relation to the adjudication proceedings under Construction Industry Payment and Adjudication Act 2012 (“CIPAA 2012”) initiated by a wholly owned subsidiary of Zelan Berhad (“Company”), Zelan Construction Sdn Bhd (“ZCSB”) against BBCC Development Sdn Bhd (“BBCC”) pursuant to work done and outstanding payment due relating to the main construction works for a project known as Cadangan Pembangunan Sementara 4 Tingkat Pejabat Jualan, Rumah Contoh Dan 1 Tingkat Sub-Basemen Di Atas Sebahagian Lot PT143, Seksyen 56, Jalan Hang Tuah/Jalan Pudu, Dalam Bandaraya Kuala Lumpur.

The Company would like to announce that ZCSB has on 29 August 2019, received the adjudication decision dated 28 August 2019 (“Adjudication Decision”) where the Adjudicator has determined as follows:

(a)    BBCC shall pay to ZCSB the sum of RM2,058,173.96 (“Adjudicated Sum”);

(b)    ZCSB shall be entitled to interest payment of 6.9% per annum on the Adjudicated Sum from the due date under Adjudication Decision until the date full payment is made; and

(c)    Parties shall bear their own costs and expenses in this adjudication proceedings.

The Company is in the process of seeking advice from its solicitors on the enforcement of the Adjudication Decision with the purpose of recovering the Adjudicated Sum.

This Announcement is dated 29 August 2019.