Further to the announcements made on 7 October 2022 and 21 March 2023 respectively, the Board of Directors of GDB wishes to announce that Grand Dynamic Builders Sdn. Bhd. (“GDBSB”), a wholly-owned subsidiary of the Company, had on 12 May 2023, filed a Writ of Summons and Statement of Claim at the High Court of Malaya at Kuala Lumpur against KSK Land Sdn. Bhd. (“KSK”). GDBSB served to KSK the sealed copy of the Writ of Summons and the Statement of Claim on 15 May 2023.

1. PARTICULARS OF THE CLAIMS UNDER THE WRIT OF SUMMONS AND STATEMENT OF CLAIM

The Writ of Summons and Statement of Claim are to claim against KSK the following:-

(a)  The total outstanding sum of RM102,076,171.93 due and owing to GDBSB (“Outstanding Sum”) under, arising out of, or in connection with the Corporate Guarantee made by KSK in favour of GDBSB on 5 August 2022 (“Corporate Guarantee”);

(b)  Interest at a rate of 5% per annum (or at such other rate the High Court of Malaya at Kuala Lumpur deems fit and reasonable) on the judgement sum from the date of the judgment until the date of the final and full settlement is paid to GDBSB or GDBSB’s solicitors;

(C)  Costs, and

(d)  Such further and/or other relief as the High Court of Malaya at Kuala Lumpur deems fit and proper to grant.

2. CIRCUMSTANCES LEADING TO THE WRIT OF SUMMONS AND STATEMENT OF CLAIM

The circumstances leading to the filing of the Writ of Summons and Statement of Claim by GDBSB is based on, inter alia, the Outstanding Sum of RM102,076,171.93 being due and payable to GDBSB by KSK, who had in the capacity of Damai City Sdn. Bhd. (“DCSB”)’s holding company, executed a Corporate Guarantee in favour of GDBSB as a security for the observance and performance by DCSB of its obligations under the contracts and agreements executed between DCSB and GDBSB.

GDBSB contends that KSK was in breach of its obligations under the Corporate Guarantee and/or in law when KSK failed, refused and/or neglected to honour the Corporate Guarantee and effect payment of the Outstanding Sum of RM102,076,171.93 to GDBSB.

The Company will make further announcements as and when there are material developments on the above matter.


This announcement is dated 15 May 2023.