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ST Engineering's US subsidiary to counter claim against Hornbeck for US$3.3m
SINGAPORE Technologies Engineering (ST Engineering) said on Monday its wholly owned US subsidiary VT Halter Marine, Inc has asserted counterclaims against Hornbeck Offshore Services LLC for about US$3.3 million and "will continue to vigorously defend its position".
VT Halter Marine and Hornbeck are involved in arbitration proceedings in New Orleans, Louisiana, the group said in a filing to Singapore Exchange.
The suit involves issues and disputes arising from a vessel construction agreement dated Nov 14, 2011, between the two parties for the design and construction of certain vessels by VT Halter Marine for Hornbeck.
ST Engineering said Hornbeck had claimed damages against VT Halter Marine mainly on the basis that the vessels constructed by the latter had alleged errors in design and construction.
Out of the damages claimed, the amount that was initially quantified by Hornbeck was about US$15.2 million.
Hornbeck subsequently revised the amount of quantified damages claimed to about US$43.5 million, according to Hornbeck's preliminary damage calculation received by VT Halter Marine in December 2016.
The group said VT Halter Marine and its legal advisers had considered and assessed the revised sums claimed as well as the potential defences, adding that VT Halter Marine has asserted counterclaims against Hornbeck.
It also said there is no change to the full-year results for the financial year ended Dec 31, 2016.