KUALA LUMPUR: TH Heavy Engineering Bhd
(TTHE) has received a notice of arbitration from Coral Intoil Sdn Bhd over claims that it had failed to provide the required funding to a joint venture company set up to bid for and undertake hook-up and commissioning jobs.
According to TTHE in a filing with Bursa Malaysia, Coral Intoil also claims payment from TTHE for the amount outstanding under the Kinabalu and Permas hook-up and commissioning projects.
Coral Intoil is claiming damages amounting to RM23.55mil as well as interest on the awarded sum for the Permas and Kinabalu hook-up and commissioning projects at a rate of 10% per annum commencing from the date of award until the date of full settlement.
The group said it does not expect to incur any losses arising from the arbitration save for legal fees and arbitration costs.
"THHE is of the view that CISB’s claim as per the Notice of Arbitration is baseless as the JV Company has been wound up on 9 April 2018.
"Furthermore, the Kinabalu HUC and Permas HUC projects were not awarded to THHE, but to its wholly owned subsidiary, THHE Fabricators Sdn. Bhd. THHE is currently seeking legal advice on the matter," it added.
At 12.30pm, shares in TTHE were trading unchanged at 9.5 sen a unit on low volume of trading.
(TTHE) has received a notice of arbitration from Coral Intoil Sdn Bhd over claims that it had failed to provide the required funding to a joint venture company set up to bid for and undertake hook-up and commissioning jobs.According to TTHE in a filing with Bursa Malaysia, Coral Intoil also claims payment from TTHE for the amount outstanding under the Kinabalu and Permas hook-up and commissioning projects.
Coral Intoil is claiming damages amounting to RM23.55mil as well as interest on the awarded sum for the Permas and Kinabalu hook-up and commissioning projects at a rate of 10% per annum commencing from the date of award until the date of full settlement.
The group said it does not expect to incur any losses arising from the arbitration save for legal fees and arbitration costs.
"THHE is of the view that CISB’s claim as per the Notice of Arbitration is baseless as the JV Company has been wound up on 9 April 2018.
"Furthermore, the Kinabalu HUC and Permas HUC projects were not awarded to THHE, but to its wholly owned subsidiary, THHE Fabricators Sdn. Bhd. THHE is currently seeking legal advice on the matter," it added.
At 12.30pm, shares in TTHE were trading unchanged at 9.5 sen a unit on low volume of trading.
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