Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on October 8, 2019

KUALA LUMPUR: MMC Corp Bhd’s 70%-owned subsidiary Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) has withdrawn its RM31.86 million lawsuit against Rising Star Shipping Sdn Bhd (RSS) — the beneficial owner of tanker MV Trident Star — and The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) Singapore branch (the Club).

In a filing with Bursa Malaysia yesterday, MMC said PTP had resolved the claim by settlement with the Club, thus discontinuing the legal proceedings against RSS and the Club.

“The withdrawal of the legal proceedings is not expected to have any significant financial and operational impact on MMC Group for the financial year ending Dec 31, 2019,” it added.

On July 18, 2017, PTP filed the suit at the High Court seeking RM31.86 million plus interest for losses due to an oil spill from MV Trident Star at the port’s premises in August 2016.

The Club is a mutual insurance association offering protection and indemnity insurance to vessels’ owners, operators and charterers worldwide.

At the time, MMC said at about 7am on Aug 24, 2016, Trident Star was berthing at ATT Tanjung Bin Terminal and, when loading a cargo of 2,500 tonnes of marine fuel oil, an overflow from one of its tanks onto the vessel’s upper deck subsequently spilled into the sea.

“The oil spill thereafter spread out into adjacent waters and towards PTP’s premises causing oil pollution damage. As a result, PTP suffered various and substantial losses,” it added.

Besides PTP’s losses of RM31.86 million from the incident, PTP was seeking a 5% interest per year on the sum from the starting date of the suit to the full and final payment, as well as costs and other reliefs.

MMC shares closed down one sen or 0.94% at RM1.05 yesterday, with a market capitalisation of RM3.2 billion.

 

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