Ahmad Zaki Resources reaches settlement over RM69.3 million lender claims
The claims concern financing payments owed by subsidiary Ahmad Zaki Sdn Bhd, with the parent company named as guarantor.
Ahmad Zaki Resources Bhd has agreed to settle claims totalling RM69.3 million involving AmBank (M) Bhd and AmBank Islamic Bhd, according to its bourse filing. The outstanding payments were owed by Ahmad Zaki Sdn Bhd (AZSB), a subsidiary wholly owned by the engineering and construction group.
Both banks brought civil proceedings naming AZSB as the debtor and its parent as guarantor. Of the amount sought, RM38.46 million was claimed by AmBank and RM30.84 million by AmBank Islamic. The group said temporary cash-flow constraints had prevented AZSB from meeting its financing obligations.
Consent judgments followed the agreement between the parties, the group said. It expects no material adverse impact from the proceedings on its operations, business or financial position.
As at Oct 9, the company said no other financier had notified it of an alleged cross-default linked to the missed payments. It also said AZSB was not a major subsidiary, accounting for 6.8% of assets employed, below the 70% threshold.
The company's shares ended trading on Oct 9 at 8.5 sen, unchanged, giving it a market value of RM55.91 million.
