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Jason's assets seized as it's made to pay sub-contractor S$206,000
TIMBER flooring provider Jason Holdings had some of its assets seized by the courts on Tuesday.
The seizure comes as Jason is ordered to pay its sub-contractor, Far East Engineering & Construction (FEEC), about S$206,000 as the two parties waged a legal battle.
Latest details of the litigation were unveiled by Jason in a filing to Singapore Exchange on Thursday.
"The Orders of Court will have a negative financial impact on the company and its subsidiaries. However, the board wishes to clarify and notify the company's shareholders and business partners that the business and operations of the group are ongoing as usual," said chief executive officer and executive director Jason Sim in the filing.
FEEC opened a suit against Jason in August last year, making a claim for some S$194,000 in connection with disputes over sanding and varnishing works performed by FEEC at various housing projects.
Jason then counterclaimed against FEEC for loss and damage resulting from defective works and damage caused to fixtures and fittings at the same housing projects. The value is estimated to be more than S$400,000.
In late January 2016, a court order stated that Jason is to pay FEEC about S$206,000, inclusive of costs.
On March 29, assets of Jason at its warehouses and premises were seized by way of a writ of seizure and sale.
The board of Jason said since FEEC has already obtained adjudication orders against Jason, it will no longer be able to pursue its overlapping claims against Jason in the suit. Jason will, however, continue to pursue its counterclaim.
Trading of Jason shares has been suspended since Jan 5. It was at 6.2 Singapore cents then.