KUALA LUMPUR: TH Heavy Engineering Bhd (THHE) has received a notice of arbitration from Coral Intoil Sdn Bhd (CISB) over claims that it had failed to provide the required funding to a joint venture (JV) company set up to bid for and undertake hook-up and commissioning jobs.
According to THHE in a filing with Bursa Malaysia, CISB also claims payment from THHE for the amount outstanding under the Kinabalu and Permas hook-up and commissioning projects.
It 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 did not expect to incur any losses arising from the arbitration save for legal fees and arbitration costs.
CISB’s claim is baseless as the JV company has been wound up on April 9, 2018. Furthermore, the Kinabalu HUC and Permas HUC projects were not awarded to THHE, but to its wholly owned subsidiary THHE Fabricators Sdn Bhd, it added.