Ho Hup Construction Bhd and its 75%-owned subsidiary, Ho Hup Ventures (KK) Sdn Bhd, have been served a writ of summons and statement of claim by Sabah Development Bank Bhd (SDB) on August 12, 2024.

The suit, dated May 15, 2024, involves SDB seeking RM46.85 million from Ho Hup and HHVKK.

Ho Hup is being sued as the corporate guarantor for Golden Wave Sdn Bhd, an indirect subsidiary, while HHVKK is named due to its shareholder status in Golden Wave.

The claim includes statutory interest, legal costs, and other expenses.

Golden Wave had previously applied for judicial management on May 17, 2024, resulting in a moratorium on claims against it.

As a result, SDB withdrew its suit against Golden Wave but continued its action against Ho Hup and HHVKK.

The financial and operational impact on Ho Hup is currently uncertain, pending the outcome of the suit.

Ho Hup is seeking legal advice and negotiating with SDB to resolve the issue.

In another two separate announcements, Ho Hup reported that its wholly-owned subsidiary, Bukit Jalil Development Sdn Bhd (BJD), has been served with two winding-up petitions totaling RM7.8 million.

The petitions were filed by Sunrise Model Sdn Bhd on July 17, 2024, seeking the return of a RM1.95 million deposit for a failed property transaction, and by NRY Architects Sdn Bhd on August 19, 2024, claiming RM5.84 million in unpaid consultancy fees.

Both petitions request BJD’s winding-up, with costs and liquidator remuneration covered by BJD’s assets.

Ho Hup disputes the claims, asserting that the deposit was non-refundable and that the consultancy work was incomplete.

The company is challenging the petitions and negotiating to resolve the disputes.

Despite these petitions, Ho Hup does not anticipate significant financial or operational impacts, as BJD is not a major subsidiary.

BJD is also in the process of selling the development project to EXSIM Persiaran Jalil Sdn Bhd. –TMR