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Nam Cheong unit receives letter of demand for deposit, serves notice of arbitration
MALAYSIAN shipbuilder Nam Cheong said that its subsidiary Nam Cheong International (NCIL) has received a letter of demand from Petra Offshore (POL), a unit of Perdana Petroleum, claiming the refund of a deposit of U$8.4 million under a contract.
This follows Nam Cheong's announcement on Dec 1 of the termination of the sale of an accommodation work barge between NCIL and POL.
NCIL has on Dec 22 served a notice of arbitration to POL under the Kuala Lumpur Regional Centre For Arbitration Rules 2013.
NCIL claims, among other things, that POL's purported termination of the contract was "wrongful and unwarranted", and the deposit paid shall be forfeited to NCIL.
NCIL is also claiming damages for wrongful termination of the contract, which was entered in June 2014.