AZRB Subsidiary Faces Two New Winding-Up Petitions, Group Expects Minimal Financial Impact

Ahmad Zaki Sdn Bhd (AZSB), a wholly-owned subsidiary of AZRB Bhd, has received two additional winding-up petitions linked to alleged outstanding payments, according to a filing made to Bursa Malaysia on Friday.

The petitions were submitted by Perunding ZKR Sdn Bhd and Mentari Kencana Sdn Bhd, with both parties claiming that AZSB failed to settle a total of RM5.31 million owed for past project works.

Details of the Petitions

• Perunding ZKR Sdn Bhd filed the first petition on Oct 8, alleging unpaid fees amounting to RM5.2 million.

• Mentari Kencana Sdn Bhd filed the second petition on Nov 3 for an outstanding sum of RM109,860.

This is the latest development in a series of claims against AZSB. Earlier in July, the company also received another winding-up petition from Giga Engineering & Construction Sdn Bhd involving RM5.86 million.

Despite these legal challenges, AZRB emphasised that AZSB is not a major subsidiary within the group. AZRB’s total investment in AZSB stands at RM165.3 million, but the group does not expect any material impact on its financial performance or day-to-day operations—aside from legal expenses.

Company Response and Ongoing Negotiations

AZRB said AZSB is currently in active discussions with all petitioners to reach a swift and amicable settlement. The group expressed confidence that the disputes can be resolved positively.

The company also clarified the reason for the slight delay in announcing the petitions, noting that it was due to ongoing good-faith negotiations with the claimants in hopes of concluding the matter without escalating it further.

Industry Context

While AZRB addresses these legal issues, developers and investors across Malaysia continue to monitor corporate stability—especially as demand rises for strategic assets such as commercial property in KL, transit-connected office space in Bukit Jalil, and high-growth industrial zones like industrial land in Selangor, factory spaces in Puchong, and industrial property in the Subang area. Corporate health often influences buyer confidence and long-term project execution within these high-demand segments.