GRP Limited Resolves Key Legal Dispute: Consent Order in EESB Case Unlocks RM3.7 Million, Arbitration Proceedings Ongoing

Key Takeaways for Investors

• Consent Order Recorded: On 28 October 2025, the Ipoh High Court recorded a Consent Order in the legal dispute between EESB and Ratus Nautika (a subsidiary of GRP Limited).
• RM3.7 Million Mareva Injunction Discharged: The injunction that previously prevented Ratus Nautika from accessing RM3,717,035.41 in its business account has been discharged, subject to certain conditions.
• Funds Segregated, Not Utilised: The company must segregate the RM3.7 million in its bank account and cannot use these funds until two ongoing adjudication proceedings are resolved.
• Stay of Civil Suit Pending Arbitration: EESB’s civil suit against Ratus Nautika is stayed, pending the outcome of arbitration proceedings initiated by Ratus Nautika.
• Directors Cleared from Civil Suit: EESB will discontinue its civil suit against Ratus Nautika’s directors, limiting personal legal exposure for the Group’s leadership.
• Ongoing Arbitration: Arbitration between Ratus Nautika and EESB remains active, leaving a significant issue unresolved but moving the process forward from the courts to arbitration.

Detailed Update on the Dispute

GRP Limited has announced a significant development in its ongoing legal dispute with EESB. According to a company statement dated 29 October 2025, the Ipoh High Court has recorded a Consent Order that brings several crucial changes to the status of the dispute:

1. Mareva Injunction Discharged: The ad interim Mareva Injunction—which had frozen up to RM3,717,035.41 in Ratus Nautika’s business bank account—has been discharged. This marks a pivotal shift, as these funds are no longer legally frozen. However, they remain segregated and unavailable for use until arbitration and adjudication outcomes are determined.
2. Segregation of Funds: Ratus Nautika has issued a written direction to RHB Bank Berhad to segregate the full RM3.7 million in its business account. The company cannot utilise these funds pending the resolution of two ongoing adjudication proceedings. This action ensures that the funds remain secure and available for any future claims following arbitration or adjudication, but also means that this capital remains unavailable for business operations in the interim.
3. Discontinuance of Civil Suit Against Directors: EESB will discontinue its civil suit against Ratus Nautika’s directors, removing a layer of personal legal risk for the Group’s executive leadership. This reduces potential liabilities and reputational concerns for the company’s management.
4. Stay of Civil Proceedings Against Ratus Nautika: EESB’s main civil suit against Ratus Nautika is stayed, pending completion of arbitration. This move shifts the dispute resolution process to arbitration, which may be more efficient and private compared to court litigation.
5. Arbitration Ongoing: The arbitration proceedings, initiated by Ratus Nautika against EESB, are still ongoing. The outcome of this process will be critical in determining the final resolution of the dispute and the fate of the segregated funds.

Investor Considerations: Potential Share Price Impact

This development is potentially price sensitive and could affect GRP Limited’s share value due to several reasons:

• The discharge of the Mareva injunction removes a significant operational constraint on Ratus Nautika, although the actual cash remains tied up.
• Clearing the directors of personal legal risk may improve investor confidence in the leadership team and reduce reputational risk.
• The outcome of the ongoing arbitration and adjudication proceedings remains uncertain. Depending on the result, the company may recover or lose access to the RM3.7 million, directly impacting its cash flow and balance sheet.
• Investors should closely monitor further announcements regarding the arbitration’s outcome, as this could trigger significant share price movements—either positive or negative.

Next Steps

GRP Limited has already complied with the Consent Order by directing RHB Bank Berhad to segregate the disputed funds. The company has reserved all its rights in the ongoing adjudication and arbitration proceedings. Management has committed to updating shareholders on any material developments as they arise.

Investors should remain alert for further updates, as the final outcome of arbitration and adjudication could materially impact GRP Limited’s financial position and share price.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions regarding GRP Limited.

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