KUALA LUMPUR (June 28): After a year of pursuing overdue claims for work in the Asia Petroleum Hub Sdn Bhd (APH), construction firm Muhibbah Engineering (M) Bhd will now have to return to the drawing board to obtain payment of about RM399.5 million.
Muhibbah managing director Mac Ngan Boon said the group was surprised that the APH project's lead financier, CIMB Bank Bhd, walked away from supporting the restructuring scheme two days ago.
"We are always hopeful to recover the money but now we have to let our people study the whole situation and see what the next step is," Mac said Muhibbah's annual general meeting on Thursday.
Mac said Muhibbah was earlier working closely with CIMB Bank in the restructuring scheme as Muhibbah was keen on taking a stake in APH.
"We believe there is a lot of potential for a terminal like this. As a construction company, we are looking for things that can give us recurring income," Mac said.
Muhibbah has also filed a suit against APH and the project's main contractor ZAQ Sdn Bhd to recover the amount owed to Muhibbah.
After CIMB Bank ceased funding for the APH project in Johor, the project's receivers had attempted to put in place a debt to equity restructuring scheme which would have seen Muhibbah and CIMB receive a stake in APH.
