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PACC Offshore sues Saudi Arabian firm for 24.4m riyals
OFFSHORE marine services provider PACC Offshore Services Holding (POSH) is suing Saudi Arabian company Makamin Offshore Saudi for about 24.4 million riyals (S$8.8 million) in payment due to the firm.
The amount owed to its wholly-owned subsidiary POSH Semco was for the charter hire of three vessels owned by the group, charges for meals and accommodation and the interest charges on this amount.
POSH said that it has on Monday initiated the process on serving the court papers on Makamin, an offshore and marine services provider established in 2011.
The outstanding sum represents about 0.8 per cent of the group's latest announced net tangible assets as at Dec 31. If POSH were to make a provision for this, its loss per share will widen from 7.2 US cents to 7.6 US cents.
POSH said that it has served notice on Makamin to withdraw one of the vessels, and that it will be suspending performance of the charter party pending the withdrawal. It also has the right to terminate remaining charter parties.