NST/File Photo
NST/File Photo

Mah Sing Group Bhd's wholly-owned unit Capitol Avenue Development Sdn Bhd has received a winding-up petition after failing to pay outstanding debts totaling RM2.19 million.

Capitol Avenue, which completed a construction project known as Sutera Avenue in Sabah back in August 2017, was given the notice on July 26 of this year.

The petition was filed by HCL & Sons Holdings Sdn Bhd (petitioner) through Messrs Chee & Co, its attorneys.

Mah Sing stated in a filing with Bursa Malaysia on Aug 2 that the petition is not anticipated to have any significant effects on the company's operations or financial position for the fiscal year ending December 31, 2022. (FY22).

The developer said that it does not anticipate any losses as a result of the petition because as mentioned above, Capitol Avenue is disputing the alleged debt and the Judgement (which serves as the foundation of the petition).

Additionally, it stated that Capitol Avenue's third-party legal action is still ongoing.

Therefore, Mah Sing noted in the Bursa filing, that Capitol Avenue is likewise contesting the petition and has obtained legal counsel on this topic.

It explained that as of Dec 31, 2021, Capitol Avenue's cost of investment and net tangible assets were RM2.5 million and RM2.87 million, respectively.

Mah Sing first announced its Sutera Avenue project in 2012, with an estimated gross development value (GDV) of RM830 million on 8.67 acres of prime commercial land along the Coastal Highway in Kota Kinabalu's Central Business District.

The site is located diagonally across the 5-star Sutera Harbour Resort and KK Times Square.

For the initial phase, the developer intended to provide serviced apartments, street mall retail spaces, and multi-storey shop offices.