This article first appeared in The Edge Financial Daily on May 8, 2019

KUALA LUMPUR: TH Heavy Engineering Bhd (THHE) announced that its unit Floatech (L) Ltd had received a writ of summons filed by Drydocks World Dubai LLC on April 23, demanding Floatech to pay the sum of US$6.22 million (RM25.83 million).

In a filing with Bursa Malaysia yesterday, THHE said the writ of summons was presented to the Dubai Courts of First Instance by Drydocks World to demand Floatech to pay the sum of US$6.22 million for wharfage charges, maintenance, repairs and installation equipment carried out by Drydocks World on the Layang floating production, storage and offloading vessel. In addition, it said that Drydocks World also claimed a legal interest of 12% per annum from the due date until the date of full settlement with expeditious execution without bail and all fees, charges and attorney fees.

Following the summons, THHE said it had appointed a local legal firm and that the court had adjourned the matter to be presented tomorrow. “As of the date of this announcement, there is no material financial and operational impact to the group,” it said. “THHE does not expect to incur any additional losses arising from the writ of summons and statement of claim, save for the legal fees that may be incurred in relation to legal representation for THHE, as the amount claimed by Drydocks World Dubai LLC has been accrued for,” THHE added.