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KUALA LUMPUR (July 24): PRG Holdings Bhd’s (KL:PRG) largest shareholder, Datuk Ng Yan Cheng, has petitioned the court to wind up the company after the two parties failed to reach an agreement to restructure a RM21.22 million shareholder advance provided by Ng.
In a Bursa filing on Friday, PRG said it was served with the petition on the same day after it was filed in the High Court on Wednesday, July 22. The group said it had approached Ng to restructure the loan, but the parties “were not able to come to a mutually agreeable statement”. Ng owns a 16.8% stake in PRG.
On June 30, Ng demanded that PRG repay RM21.22 million owed to him within 21 days. The amount relates to shareholder advances he had previously provided as working capital. He said he would begin winding-up proceedings if the payment was not made.
In the winding-up petition filed with the High Court, Ng is seeking a court order to wind up PRG, appoint a liquidator to oversee the process, and have the legal costs of the petition paid from the company's assets.
PRG said it is now engaging several accounting and legal firms to explore restructuring options and is weighing all viable options for restructuring the company. It added that further announcements will be made if there are any material developments.
The latest legal action by Ng marks a dramatic escalation in the dispute between PRG and Ng, who on Wednesday defended his role as one of the group's biggest financial backers amid an ongoing boardroom battle.
Ng said he had advanced a total of RM89.55 million to PRG and its subsidiaries over the years, with about RM73.1 million still outstanding. He said most of the funding was unsecured and interest-free and had helped the group continue operating when its own cash flow was insufficient.
Ng also rejected allegations that he had acted against PRG's interests, arguing that his financial interests were aligned with the company's recovery because he risked losing both the outstanding advances and the value of his shareholding if the group failed.
What began as a dispute over a proposed debt settlement has since escalated into a wider corporate governance and shareholder conflict involving independent review of related-party transactions, boardroom challenges, and winding-up proceedings.
After the proposed debt settlement between developer Premier De Muara Sdn Bhd (PDM) and PRG’s construction unit, Premier Construction (International) Sdn Bhd (PCI), was terminated due to concerns over the undisclosed relationship between PDM and Ng, PCI sought to recover RM64.24 million in unpaid payments from Ng-linked PDM for the completed Picasso Residence project via a letter of demand in early June. The letter had warned PCI would proceed with winding-up proceedings if payment was not made. On July 9, PCI announced that it would commence winding-up proceedings against PDM to recover the outstanding amount.
Following pressure from PRG’s second-largest shareholder, Datuk Sheah Kok Fah, who owns an 8.14% stake, PRG also appointed PKF Covenant Sdn Bhd to conduct an independent review of the transactions between PCI and PDM.
Sheah also made several attempts to remove group managing director Andrew Chan Lim-Fai, who is Ng’s son-in-law, as well as other board members, but was unsuccessful. Chan has since resigned, stating that the decision was made “in the best interest of the company”.
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