This article first appeared in The Edge Financial Daily on June 28, 2019

KUALA LUMPUR: Icon Offshore Bhd said its wholly-owned subsidiary Icon Ship Management Sdn Bhd (ISM) had 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 yesterday, Icon said ISM was on Tuesday 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 and March 9, 2015 for the maintenance of the vessel, and that ISM allegedly not making prompt and punctual payments 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 the case management date for the suit had been fixed for 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 on ISM and the group.

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