KUALA LUMPUR (March 21): GDB Holdings Bhd, via its wholly owned subsidiary Grand Dynamic Builders Sdn Bhd (GDBSB), has withdrawn its legal suit against KSK Land Sdn Bhd, the holding company of Damai City Sdn Bhd, over unpaid monies in relation to the construction of a building here.

However, the construction outfit will have the liberty to file afresh should KSK Land fail to comply with any demand made by GDBSB based on the corporate guarantee, the company said in a filing to Bursa Malaysia on Tuesday (March 21).

“In the event that KSK Land fails to, refuses, and/or neglects to comply with any demand made by GDBSB against KSK Land based on the corporate guarantee dated Aug 5, 2022 thereafter, GDBSB has the right to take legal action against KSK Land,” filings showed.

GDBSB sued KSK Land to recover RM120.69 million that the builder claims is the sum owed by Damai City on Oct 6, 2022.

The company filed a writ of summons and statement of claim to initiate the suit at the High Court, saying KSK Land was in breach of its obligations under the corporate guarantee.

GDBSB secured a RM1.25 billion contract from DCSB in 2020 to complete the construction of the 8 Conlay mixed development.

But last August, GDBSB served a suspension notice to DCSB and halted all works on the project due to payment issues.

However in a statement on Jan 9, 2023, GDB said it has resumed work on a part of the project as it has received partial payment from Damai City

GDB said it would resume façade work on Tower A, and that full work on the project will resume in early April 2023, provided Damai City meets the agreed terms and settles the outstanding amounts as scheduled.

Shares of GDB closed unchanged at 20 sen per share, giving the company a  market capitalisation of RM187.50 million.