Raffles K12 Sdn Bhd, a wholly-owned subsidiary of Raffles Education, and Pembinaan Mitrajaya Sdn Bhd have commenced arbitration proceedings against each other.
The proceedings were made at the Asian International Arbitration Centre (AIAC) in Malaysia.
The proceedings are related to claims arising from the non-conforming and defective and, or incomplete works by Mitrajaya as contractor for the Raffles American School in Johor Bahru.
Based on the latest claims and counterclaims filed by Raffles K12 on March 2, the company is claiming for an aggregate amount of RM89.3 million ($29.0 million).
The amount includes RM81.33 million in losses and damages to remedy the works and for liquidated damages.
See: Raffles Education refutes 'unsubstantiated allegations' made by Oei's second letter since Oct 16
See also: Sembcorp issues $350 mil of guaranteed notes due 2036 at 3.65%
Mitrajaya, in its latest claims and counterclaims, is asking for RM64.91 million. The amount includes RM57.43 million in the alleged undervaluation and under-certification of works done, as well as alleged loss and expenses suffered under the purported prolongation period under the contract.
In its filing made on SGX on Nov 3, Raffles Education says its subsidiary has a “reasonable good prospect of success” in respect of the proceedings.
It adds that based on the original contracts, “the outstanding amount that remains unpaid from Raffles K12 to Mitrajaya amounts only to approximately RM6 million, which accounts for less than 10% of the total amount sought by Mitrajaya in the counterclaims”.
As at 9.20am, shares in Raffles Education are trading 0.5 cent lower or 6.76% down at 6.9 cents.
