KUALA LUMPUR: Sarawak Consolidated Industries Bhd's (SCIB) unit SCIB Properties Sdn Bhd (SCIBP) has issued a demand for repayment amounting to RM19.7 million from Awana JV Suria Saga Sdn Bhd.
This follows Awana's failure to fulfil repayment obligations under the settlement agreement (SA).
"SCIB remains steadfast in safeguarding the company's financial position and ensuring that all agreements are honoured," said SCIB group managing director Ku Chong Hong in a statement today.
"The decision to terminate the settlement agreement was not taken lightly but was necessary to uphold the interests of our shareholders and stakeholders.
"We will take all necessary measures to recover the outstanding sums while maintaining our focus on operational excellence and growth," Ku added.
The total includes RM18.6 million under the SA 2023, RM490,000 under SA 2024 and RM580,000 as an additional debt assigned from SCIB Industrialised Building System Sdn Bhd.
"Despite repeated reminders and opportunities for compliance, the counterparty has not fulfilled its financial obligations as agreed," it said.
In light of this breach, SCIB said it had exercised its contractual rights to terminate the agreement.
The company issued a formal demand for the settlement of the total outstanding sum within 14 days, it added.