King Wan Corporation is seeking to claim payment of $2.6 million from Tiong Aik Construction for works done under an existing contract for sanitary and plumbing works and other related works with the latter.
King Wan is also claiming another $0.6 million in retention monies held by Tiong Aik.
Tiong Aik Construction is the wholly-owned subsidiary of TA Corporation. The latter announced, on July 18, that the former has appointed provisional liquidators after assessing that it is unable to pay its debts as and when they fall due.
With Tiong Aik Construction being placed under provisional liquidation, King Wan’s board deems that the recoverability of the payment claim is low and that it is likely to have a negative impact on its earnings for the FY2024 ending March 31, 2024.
Tiong Aik Construction’s parent group, TA Corporation had also requested for a voluntary suspension in the trading of its shares earlier on July 18 pending the engagement of its stakeholders and the clarity of the group’s financial position. TA Corporation is seeking to engage its stakeholders in relation to Tiong Aik’s provisional liquidation and the possibility of cross-defaults being triggered by the provisional liquidation for loan facilities taken by the other members of TA Corporation.
Shares in King Wan closed 0.1 cent lower or 3.13% down at 3.1 cents on July 17.
