Further to the announcement made by GPP Resources Berhad ("GPP" or "the Company") on 24 December 2025, the Company wishes to provide an update on the Judgment in Default of Appearance issued by the Magistrates' Court at Sandakan, Sabah, Malaysia in Suit No. SDK-A72-33-11/2025 (MCI), against Green Energy Resources (M) Sdn. Bhd. ("GERSB"), a wholly-owned subsidiary of the Company, by its customer, Berkat Setia Sdn. Bhd. ("Plaintiff").
The Board of Directors of GPP wishes to announce that on 15 May 2026, a Consent Order was recorded before the Magistrates' Court at Sandakan, Sabah between Plaintiff and GERSB in relation to the said matter. The digitally sealed copy of the Consent Order was duly received by the Company on 19 May 2026.
Pursuant to the Consent Order, GERSB shall undertake, among others, the supply, delivery, installation, wiring, piping, testing and commissioning of a cooling tower at the Plaintiff's palm oil mill in accordance with the agreed quotation and specifications. GERSB is also required to submit the relevant technical drawings, structural data, thermal calculations, detailed work schedule and supporting documentation for the Plaintiff's review and approval.
The detailed work schedule is required to be submitted by GERSB within seven (7) days from the date of the Consent Order, while the installation and commissioning works are to be completed within sixty (60) days from the Plaintiff's approval of the relevant technical drawings and requirements.
The Consent Order further provides, among others, that:
(a) the Plaintiff shall bear the costs of the civil works and foundation construction for the cooling tower subject to receipt of the approved and complete technical drawings and specifications from GERSB;
(b) the remaining balance payment of RM131,066.40 shall be payable to GERSB upon successful installation and commissioning of the cooling tower, completion of performance testing and submission of the required documentation;
(c) the Plaintiff shall not pursue claims for loss of profit, general damages, interest and costs against GERSB as contained in the Plaintiff's Statement of Claim dated 3 November 2025;
(d) GERSB shall withdraw its application filed on 16 January 2026 and GERSB had subsequently filed the Notice of Withdrawal to the Court on 19 May 2026; and
(e) both parties shall bear their own legal costs.
Further, the Consent Order represents an agreed resolution between the parties in relation to the subject matter of the action, subject to compliance with the terms and conditions set out therein. Barring any non-compliance by either party, the Company does not expect any further material claims to arise from the matter.
Further announcements will be made as and when there are any material developments on this matter.
This announcement is dated 20 May 2026.