Hong Lai Huat's (SGX:CTO) wholly owned subsidiary, PH One Development, received a letter of demand for payment from Shanghai Baoye (SBC) for an outstanding payment claim of around $11.0 million.
The group has dispute the claims and asserting them as baseless, according to a filing with the Singapore Exchange on Monday.
SBC was the group's main contractor for its mixed-use development project, D'Seaview in Cambodia.
The company has engaged its legal representatives to send a formal response to SBC, outlining the various failures and breaches of contract by the contractor that delayed the project.
Shares of the construction and development company were down over 5% in recent trading.
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