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PACC Offshore Services hit with legal suit for S$7.1m of damages and deposit
OFFSHORE marine services provider PACC Offshore Services Holdings (POSH) said it has been served on Sept 2 with a writ of summons and statement of claim by Kensteel Engineering for S$7.1 million of damages and a deposit paid.
POSH had in January 2015 bought a property from Kensteel. The acquisition is subject to Kensteel obtaining approval from Jurong Town Corporation (JTC). JTC rejected the application and POSH tried to get a refund of the deposit it paid under a sales and purchase agreement.
Kensteel is claiming that it is entitled to forfeit the deposit, and is also claiming for damages of S$3.3 million which it alleges it suffered as a result of the sale of the property not having been completed.
The total sum of the deposit (S$3.8 million) and the claim for damages of around S$3.3 million adds up to S$7.1 million, or 9.4 per cent of POSH's 2014 net profit after tax, and less than 0.1 per cent of the group's audited net tangible assets at end-2014.
"The company intends to defend the claim vigorously and is taking legal advice," POSH said.
POSH closed at 31.5 Singapore cents a share, down one cent or 3.1 per cent, before the announcement.