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MHB

0.885

+0.035 (+4.1%)

MATERIAL LITIGATION MATERIAL LITIGATION BETWEEN E. A TECHNIQUE (M) BERHAD AND MALAYSIA MARINE AND HEAVY ENGINEERING SDN BHD FOR THE PROVISION OF DEMOLITION, REFURBISHMENT AND CONVERSION OF DONOR VESSEL INTO FLOATING, STORAGE AND OFFLOADING FACILITY FOR FULL DEVELOPMENT PROJECT, NORTH MALAY BASIN

MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
MATERIAL LITIGATION BETWEEN E. A TECHNIQUE (M) BERHAD AND MALAYSIA MARINE AND HEAVY ENGINEERING SDN BHD FOR THE PROVISION OF DEMOLITION, REFURBISHMENT AND CONVERSION OF DONOR VESSEL INTO FLOATING, STORAGE AND OFFLOADING FACILITY FOR FULL DEVELOPMENT PROJECT, NORTH MALAY BASIN

Reference is made to the Malaysia Marine and Heavy Engineering Holdings Berhad (“MHB” or “the Company's”) announcements dated 26 June 2018, 2 October 2018 and 5 October 2018 in respect of the above matter and the material litigation under Note B9 of the Quarterly Results for the period ended 31 March 2019.

 

On 27 September 2018, Malaysia Marine and Heavy Engineering Sdn Bhd (“MMHE”) a wholly-owned subsidiary and also a major subsidiary of MHB had received a Notice of Arbitration from E. A. Technique (M) Berhad (“EATech”) for a number of claims in relation to the contract for Provision of Demolition, Refurbishment and Conversion of Donor Vessel into a Floating, Storage and Offloading Facility for Full Development Project, North Malay Basin.

 

On 5 October 2018, MMHE, represented by Mohanadass Partnership, served a Payment Claim on EATech under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”).

 

On 27 May 2019, the Adjudicator appointed pursuant to CIPAA allowed MMHE’s claim in the sum of USD21,607,206.38 including  goods  and  services  tax  of  6% to be paid by 28 June 2019 with interest of 1.5%  per month from 5 October 2018 until full and final settlement.

 

EATech is also directed to pay all costs of the adjudication including MMHE’s cost. Further, EATech’s cross claim and set off for the sum of USD87,200.00 was allowed whereas the remaining cross claims were dismissed.

 

The award will not have any material effect on the earnings and the net assets of the MHB Group for the financial year ending 31 December 2019.

 

The announcement is dated 29 May 2019.






Announcement Info

Company Name MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD
Stock Name MHB
Date Announced 29 May 2019
Category General Announcement for PLC
Reference Number GA1-29052019-00074