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Tuesday, September 2, 2014

Zelan to receive RM104.7m from Meena Holdings this week (Edge)

Zelan Bhd is set to receive the 121.64 million dirhams (RM104.7 million) owed by Meena Holdings LLC this week, after two rounds of delay, according to sources.

The money was part of a supplementary agreement the two entities had signed to allow Zelan to complete the Meena Plaza mixed use development in Abu Dhabi, which was halted after Meena abruptly terminated Zelan’s contract in November 2012.

“Only after Zelan receives the money will it be able to continue the project,” a source told The Edge Financial Daily. The source said Zelan will use the money as working capital, with a small sum set aside to settle some short-term borrowings.

“The amount might be small, but it will allow Zelan to kick-start — or rather complete — the project. There is 515.49 million dirham worth of works that are still incomplete,” the source added.

About 92.53 million dirham out of the sum owed by Meena Holdings is for the performance bond that was liquidated after Meena Holdings terminated the contract. The remainder is for the payment of outstanding progress claims...

At Zelan’s annual general meeting last Friday, the group’s newly-minted managing director Adnan Mohammad told reporters that Zelan is looking forward to a more positive year for its financial year ending Dec 31, 2014 (FY14).

“Looking at our 1QFY14 results, I think things are starting to turn around for Zelan. Looking at the amount of contracts that we have won and the completion of the second supplementary agreement [with Meena Holdings], these are positive signs for Zelan,” he said.

“We should recommence our work [for Meena Holdings] soon and start work on the local projects we had secured recently.”

Zelan’s order book presently stands at RM1.2 billion, which will last the group for some 31 months, said Adnan.

Zelan had also bid for more jobs at Petroliam Nasional Bhd’s (Petronas) refinery and petrochemical integrated development (Rapid) complex in Pengerang, Johor, said Adnan. However, he declined to reveal the jobs and the tender book figure.

“Our expertise lies in marine engineering. There are many other engineering and construction jobs in Rapid and we have put in [our] bids. We have to just wait for the results to see how it goes,” he said.

Apart from the Petronas job it won recently, Zelan has also been awarded a job by the East Coast Economic Region Development Council to build a drawbridge in Kuala Terengganu. It will undertake the projece via a 50:50 joint venture with Hasrat Sedaya Sdn Bhd.

This article first appeared in The Edge Financial Daily, on September 2, 2014.

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