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A WHOLLY owned unit of Catalist-listed Acesian Partners has received a statutory demand from the solicitors of Unitex Engineering Pte Ltd to pay the latter S$1.55 million plus all accruing interest.
This statutory demand arose from the termination of the sub-contract between its wholly-owned subsidiary, Acesian Star (S) Pte Ltd (ASPL), which is under judicial management, and Takenaka Corporation, for sub-contract works at Changi Airport Terminal 1.
Acesian Partners explained that ASPL was awarded the sub-contract by Takenaka to provide air-conditioning mechanical ventilation system services for the proposed development of Terminal 1 extension at the Singapore Changi Airport in 2015.
But some 15 months after the commencement of the sub-contract works, ASPL received letters from Takenaka's lawyers, saying that Takenaka is terminating sub-contract, as it had come to Takenaka's knowledge that ASPL subcontracted the whole or part of the sub-contract works to its fully owned subsidiary, Active Building Technologies Pte Ltd (ABT), without prior written consent.
Unitex is a sub-contractor engaged by ABT for the T1 extension works and had on Nov 17 issued a statutory demand to ABT to pay up the compensation by Dec 8, failing which Unitex has the right to apply to the court to wind up ABT.
"The directors are of the view that the said sum, if enforced, may have a material impact on the financial position of the group for financial year ending on Dec 31, December 2017," Acesian Partners said.