Icon Offshore unit slapped with lawsuit over breach of contract

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KUALA LUMPUR (June 27): Icon Offshore Bhd says its wholly-owned subsidiary Icon Ship Management Sdn Bhd (ISM) as been slapped with a lawsuit for breach of contract in relation to the construction of a platform supply vessel (PSV).

In a filing with Bursa Malaysia today, Icon said ISM had on Tuesday (June 25) been served a writ of summons and statement of claim from Labuan Shipyard & Engineering Sdn Bhd (LSE).

Based on the statement of claim, the suit arises from disputes in connection with an agreement dated Sept 30, 2011 between ISM and LSE in relation to the construction of a PSV, it added.

LSE is seeking general damages, RM13.94 million in outstanding claims consisting of costs allegedly incurred between Oct 1, 2014 to March 9, 2015 for the maintenance of the vessel, and that ISM had allegedly not made prompt and punctual payment of all milestone payments allegedly resulting in LSE incurring finance charges and interest charges.

LSE is also alleging that there was a shortfall in payment of "Milestone No. 11 by ISM".
 
Icon said a case management date for the suit has been fixed on July 5 in the High Court here.

"Having received legal advice, ISM believes that there are good grounds to resist various claims made in the suit and will defend the suit. Messrs Skrine, advocates and solicitors, have been appointed to represent ISM in the suit and to take all necessary steps on behalf of ISM to defend the suit," it added.

Icon noted that the suit is not expected to have any significant financial and operational impact to ISM and the group. 

It added that further announcements on material developments in the suit will be made as and when necessary from time to time.

Icon shares ended the morning session unchanged at 8.5 sen, with 91,000 shares done, bringing a market capitalisation of RM100.06 million.