TH Heavy's unit fined US$6.22 mil by Dubai Court

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KUALA LUMPUR (May 7): 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 (approximately RM25.82 million).

In a filing with Bursa Malaysia today, 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 the wharfage charges, maintenance, repairs and installation equipment carried out by Drydocks World on the Layang floating production, storage, and offloading (FPSO) vessel.

In addition, it said that Drydocks World also claimed a legal interest of 12% per annum from 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 on May 9.

"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.

Shares of THHE closed unchanged today at 6 sen with a market capitalisation of RM67.28 million.