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Rich Capital JV being sued by main contractor in Batam
A JOINT-VENTURE vehicle linked to Rich Capital is being sued by the main contractor of its Oxley Convention City project in Batam, Indonesia.
The contractor, Rich-Link Konstruksi (RLK), commenced a lawsuit against Oxley Karya Indo Batam (OKIB), Indonesian joint venture partner Karya Indo Batam (KIB) and BPN Kota Batam in the Batam District Court on Oct 29, Rich Capital said on Monday night.
Among the remedies sought in the suit, RLK has demanded that OKIB and KIB not carry out any construction works on the project land, pending a final decision by the Court.
RLK also wants OKIB to pay it a claim of 268,776,470,683 rupiah (S$26 million) in cash immediately for losses due to non-performance of OKIB’s payment obligations to RLK as well as for business disruption and reputational loss.
OKIB is currently seeking Indonesian legal advice with a view to vigorously resisting and/or defending the RLK suit, as well as pursuing any counterclaim against RLK, Rich Capital said.