Moody's outlook on the Korean banking system has been negative since May 2016.
KUALA LUMPUR: Wah Seong Corporation Bhd's unit is counter suing Dutch company Bauhuis B.V. for US$20.57mil (nearly RM87mil) due to cost overruns and delays allegedly caused by the latter for a pipe-coating contract.
Oil and gas services provider Wah Seong announced on Wednesday its Hong Kong unit Wasco Coatings HK Ltd,had received a request for abitration from Bauhuis.
“Bauhuis estimates its claims in the arbitration to be 3.90mil euros (RM18.40mil) resulting from monies outstanding under the contract No. 015-117 dated Sept 2, 2015,” it said.
The contract was to supply pipe-coating equipment to be installed and commissioned by Bauhuis at a pipe manufacturing plant in Regina, Canada.
However, Wah Seong said Bauhuis’ claim can be legally defended and it would be filing a response to the request for arbitration within 28 days from Wednesday.
It also filed a counter-claim against Bauhuis for US$20.57mil due to the cost overruns and delays attributed to Bauhuis.
“Further, the board is of the view that the arbitration will not have any material impact on the operations and financial position of the Company and the Wah Seong Corp Group for the current financial year ending Dec 31, 2017,” it said.
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