CR Construction (01582) announced that its indirect wholly-owned subsidiary, CR Sea (Malaysia) Sdn. Bhd. (CR Sea), received a winding-up petition dated May 27, 2025, on May 30, 2025, concerning an outstanding debt of MYR 913,700 owed to a subcontractor for aluminum formwork supplies. On July 28, 2025, CR Sea reached a settlement agreement with the subcontractor, agreeing to pay MYR 850,000 in four installments on September 22, October 1, November 7, and November 7, 2025. The first two payments were settled as scheduled.

On October 14, 2025, the High Court of Malaya issued a winding-up order against CR Sea in absentia under Sections 465(1)(e) and 466(1)(a) of the Companies Act 2016, appointing Dato' Dr. Shanmuganathan a/l Vellanthurai as liquidator. Subsequently, CR Sea and the subcontractor finalized a settlement agreement on November 7, 2025, with CR Sea paying MYR 551,600 in full that same day.

Following full settlement, CR Sea applied to the court to terminate or revoke the winding-up order, supported by a no-objection notice from the subcontractor, and sought a stay of execution pending a final ruling. The stay application was scheduled for a hearing on December 17, 2025. During the hearing, the judge raised concerns about jurisdiction and directed the case to be heard by the court that issued the winding-up order. No substantive ruling was made.

According to Malaysian legal counsel, the key legal effects of a stay order include: 1. Suspending the winding-up order until a termination ruling is made. 2. Halting the legal and commercial effects of the order, allowing CR Sea to resume operations, enter contracts, and make payments. 3. Freezing the liquidator’s powers. 4. Making the stay application a core part of the termination strategy to prevent further damage. 5. Improving CR Sea’s risk profile by stabilizing operations and preserving value pending a final decision.

CR Sea will make every effort to secure a termination ruling at the January 7, 2026 hearing. The petition was initially received by a CR Sea project manager on May 30, 2025, but was not escalated to the board until mid-June due to a lack of awareness of its urgency. The board, with limited knowledge of listing rules, did not report it immediately. Despite partial payments, the subcontractor did not withdraw the petition, leading to the winding-up order. The board only became fully aware in early December 2025 and has since taken steps to gather evidence and prepare disclosures.