KUALA LUMPUR (Oct 7): GDB Holdings Bhd is suing developer KSK Land Sdn Bhd to recover RM120.69 million that the builder claims is the sum it is owed by KSK Land's unit.

GDB's wholly owned Grand Dynamic Builders Sdn Bhd (GDBSB) filed the writ of summons and statement of claim to initiate the suit at the High Court here on Thursday (Oct 6).

“The circumstances leading to the filing of the writ of summons and statement of claim by GDBSB is based on, inter alia, the sum of RM120,690,409.12 (outstanding sums) being due and payable to GDBSB by KSK, who had in the capacity of Damai City Sdn Bhd’s (DCSB) holding company, executed a corporate guarantee in favour of GDBSB on Aug 5,” said GDB in a Bursa Malaysia filing.

GDBSB contends that KSK was in breach of its obligations under the corporate guarantee, said GDB.

GDBSB secured a RM1.25 billion contract from DCSB in 2020 to complete the construction of the 8 Conlay mixed development. It was GDB's biggest contract at the time.

But in August this year, GDBSB served a suspension notice to DCSB and halted all works on the project, which boasted an estimated gross development value of RM5.4 billion and would feature the world's tallest "twisted" twin tower residence.

Just a month before that, KSK refuted claims that the group was having financial issues and told The Edge that it remained "financially strong with sufficient resources to ensure the completion of the 8 Conlay project".

GDB shares closed five sen or 2.94% lower on Friday (Oct 7), giving the builder a market capitalisation of RM150.39 million.