Keppel unit suspends business with Viking Offshore Marine unit amid litigation

KEPPEL Offshore & Marine has suspended business with Marshal Systems, a unit of Viking Offshore & Marine, after another unit of the latter commenced legal proceedings against Keppel Singmarine, Viking Offshore & Marine said in a Singapore Exchange (SGX) filing on Tuesday after close.

Viking Offshore & Marine said that it gave written notice to do so on or around May 28.

"Marshal has no relation to the issues in dispute in the present proceedings and should not have to suffer collateral damage from commercial pressure directed at the company," said Viking Offshore & Marine.

It also said in its announcement that Keppel Singmarine has denied all of the company's claims and counterclaimed, among other things, for alleged backcharges amounting to S$3.8 million. Viking Offshore & Marine reiterated its rejection of these backcharges in its reply to the defence and counterclaim.

"As this is an ongoing legal dispute, Keppel O&M is unable to comment on the details of the case," said a Keppel Offshore & Marine spokesman.

It was announced in late March that Viking Offshore & Marine's unit Viking HVAC had sued Keppel Singmarine over claims totalling at least S$5.07 million for subcontracting works relating to design, supply and installation of a heating, ventilation, air-conditioning and refrigeration system.

Keppel Singmarine was the main contractor, and Viking HVAC was the subcontractor. Viking HVAC is further claiming damages from Keppel Singmarine for "prolongation" of the contract period.

Viking Offshore & Marine's shares closed unchanged on Tuesday  at S$0.01.