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Nam Cheong faces cancellation of barge's sale to Malaysian firm
OFFSHORE support vessel builder Nam Cheong has received a notice of cancellation for the sale of an accommodation work barge from a unit of Malaysia-listed offshore marine service provider Perdana Petroleum.
The firm, however, says the termination is not valid, and could amount to a breach of contract, for which it is entitled to pursue compensation from Perdana's subsidiary, Petra Offshore.
The contract, if cancelled, would have an impact on Nam Cheong's earnings in the current financial year.
How big this will be cannot yet be ascertained as it depends on the outcome of the firm's legal recourse, Nam Cheong said in an announcement on Tuesday. "The group intends to fully enforce its rights against Petra Offshore Limited and, if necessary, seek legal redress."