Encorp seeks RM68.7m from terminated condo contract

PETALING JAYA: Encorp Bhd is claiming RM68.67 million from Lembah Pencala Sdn Bhd over wrongful termination of a contract to build four 13-storey blocks of apartments in Ara Damansara.
Additionally, Encorp's unit, Encorp Construct Sdn Bhd which yesterday served a notice of arbitration on Lembah Pencala, is seeking general damages, refund of proceeds from a performance bond of RM9.04 million and financing charges, with costs.
It said Lembah Penchala had awarded the contract to Encorp Bhd involving the construction and completion of the main works for the four blocks with a total of 409 apartments, three storey basement car park and other facilities along Jalan PJU 1A/20.
"The arbitration proceeding is not expected to have a material impact on the operational and financial position of Encorp Group for the financial year ending Dec 31, 2014," it said.