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PACC Offshore Services hit by additional S$24.5m claim over failed property purchase
OFFSHORE marine services provider PACC Offshore Services Holdings (POSH) is taking legal advice over an additional S$24.5 million in legal claims in a tussle concerning a property that it failed to acquire. The property is now in the process of being sold to another party.
Together with the previous claim of S$6.019 million, the new claim amount is S$30.519 million. It represents about 5.91 per cent of the POSH group's audited net loss after tax for the financial year ended Dec 31, 2016 and 3.48 per cent of the group's audited net tangible assets as at Dec 31,2016, it said in a filing with the Singapore Exchange on Wednesday night.
In early 2015, POSH agreed to buy the property from Kensteel Engineering. But it did not obtain JTC's approval, and Kensteel sought to forfeit POSH's S$3.8 million deposit, and also claim an additional S$3.3 million in damages. Kensteel then reduced the damages to S$2.219 million.
Now, Kensteel, being the claimant, wants to amend its claim to increase the claimed amount by S$24.5 million. POSH said in a filing on Wednesday night that this increase represents the difference in price of POSH's failed purchase, and a new one, signed with a third party, that was sealed on April 4 this year.
The sum is one "which the claimant had claimed further or alternatively to its forfeiture of the deposit". "Further, the claimant has maintained its claim for damages of S$2.219 million as an alternative claim to its claim for S$24.5million," said POSH.
The new sale is still awaiting JTC approval, said POSH.
The Singapore courts have given Kensteel until 6pm on May 5 to serve the amended claim on POSH. In the amended claim, Kensteel will have to also detail the circumstances of the sale of the property to the third party, the status of the requisite application to JTC and how the property came to be offered to be sold to the third party.
"The company intends to defend the amended claim vigorously and is taking legal advice," said POSH.
POSH's counter ended Wednesday lower by 1.52 per cent at S$0.325.