KUALA LUMPUR (July 10) — PRG Holdings Bhd has announced plans to initiate a winding-up petition against Premier De Muara Sdn Bhd (PDM), a company linked to its largest shareholder, Datuk Ng Yan Cheng, over an alleged RM64.24 million in unpaid construction costs related to the completed Picasso Residence project in Kuala Lumpur.
According to a Bursa Malaysia filing, PRG has instructed its legal counsel to file the winding-up petition after PDM failed to settle the outstanding amount within the 21-day period stated in a statutory demand issued on June 8, 2026.
Dispute Over Picasso Residence Project
The claim was made through PRG's wholly owned subsidiary, Premier Construction (International) Sdn Bhd (PCI), which served as the main contractor for the Picasso Residence development.
PCI alleges that PDM owes RM64.24 million for construction works completed on the residential project. With the statutory demand remaining unpaid after the prescribed period, PRG is now proceeding with legal action to recover the debt.
Largest Shareholder Responds with Separate Claim
The legal action comes shortly after PRG itself received a statutory demand from its largest shareholder, Datuk Ng Yan Cheng, who owns 19.39% of the company.
On July 1, Ng demanded repayment of RM21.22 million, representing shareholder loans and working capital advances previously extended to PRG. He has also given the company 21 days to settle the amount, failing which he may commence winding-up proceedings against PRG.
Settlement Agreement Collapsed
The current dispute originated from PRG's decision to terminate a settlement agreement with PDM on May 19, 2026.
PRG stated that PDM had failed to disclose:
Its relationship with Datuk Ng Yan Cheng.
The existence of a court judgment against the company.
According to PRG, these undisclosed matters affected PDM's ability to fulfil its obligations under the settlement.
Under the terminated agreement, 12 residential units at Picasso Residence, valued at RM13.37 million, were to be transferred to PRG as partial settlement of RM37.17 million owed by PDM.
Boardroom Conflict Intensifies
The dispute has also escalated into a corporate governance battle within PRG.
The company's second-largest shareholder, Datuk Sheah Kok Fah, together with shareholders Sy Dioceldo Sy, Cheah Eng Chuan, and Datuk James Jr Lee Weng Kei, who collectively own more than 10% of PRG, has requested an Extraordinary General Meeting (EGM).
The shareholders are seeking to:
Remove Group Managing Director Andrew Chan Lim-Fai.
Restructure the company's board of directors.
Andrew Chan is the son-in-law of Datuk Ng Yan Cheng, adding another layer of complexity to the ongoing shareholder dispute.
What I Learn
This case highlights how commercial disputes can evolve into broader corporate governance conflicts. PRG is pursuing legal action to recover a substantial construction debt, while simultaneously facing a repayment claim from its own largest shareholder.
The termination of the settlement agreement has intensified tensions between the company and parties linked to its major shareholder, resulting in multiple legal proceedings and a renewed attempt by minority shareholders to reshape the board. Investors will likely monitor the winding-up actions, the outcome of the proposed EGM, and whether the various parties can reach a resolution without prolonged litigation, as these developments could significantly influence PRG's financial position, governance, and future business direction.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 10 Jul 26
Malaysia