PETALING JAYA: TSR Capital Bhd is claiming RM35 million from Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd (SPYTL) over the termination of the sub-contract work for the Electrified Double Track project from Gemas to Johor Baru.
TSR Bina said in a filing with Bursa Malaysia that its wholly owned subsidiary TSR Bina Sdn Bhd has commenced arbitration proceedings against SPYTL, citing the termination of the sub-contract by SPYTL is unlawful and wrongful.
In response to TSR’s notice of arbitration, SPYTL has also made a counterclaim with a claim sum of about RM22 million.
TSR believes the risks of losses and adverse impact on the company to be minimal and therefore not material.
“There is no material operational impact arising from the arbitration. The company does not expect any losses to arise by reason of the commencement of the said arbitration proceeding other than legal cost and time incurred in the claim.”
TSR also stressed that the arbitration proceedings are not expected to have a material impact on its earnings per share and net assets per share for the financial year ending June 30, 2020.
Early this year, TSR secured a RM307 million contract from SPYTL for sub-contract work, which includes site clearance and embankment earthwork.
The project was supposed to be completed by March 2020.
Source: The Sun Daily