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Two more lawsuits for Technics Oil & Gas as S$70.5m liftboat order falls through
MAINBOARD-listed Technics Oil & Gas is facing two more legal suits of close to S$5 million in loan repayments, even as a S$70.5 million newbuild order for its work fell through.
The two new suits, both detailed in a filing to the Singapore Exchange (SGX) on Thursday evening, will bring the total number of legal proceedings that the Singapore-based offshore marine player has received on Thursday to three.
In the latest filing, Technics said that its subsidiary, Technics Offshore Engineering Pte Ltd, has received two writs of summons from Ting Tiong Ching and Hup Seng Offshore Engineering (Pte) Ltd respectively.
Ting Tiong Ching is a former director of the company who is claiming for repayment of loans amounting to approximately S$1.9 million together with interest accrued and legal costs.
Hup Seng is a company controlled by the relatives of Ting Tiong Ching and is claiming for repayment of loans amounting to approximately S$3 million together with interest accrued and legal costs.
"The company has been advised that Technics Offshore Engineering Pte Ltd has a good defence, and has engaged its legal counsel to handle the vigorously defend the action. The company will make further announcements as and when there are material developments in relation to the above legal action," it wrote.
Separately, the company said that the contract to construct a liftboat "has lapsed, and become null and void".
"This is due to non-fulfilment by the parties of a clause in the contract specifying the contract's effective date," said Technics.
This was for a S$70.5 million newbuild order that was announced in September 2015. It was awarded by an established regional player based in Malaysia and comes with an optional second unit to be exercised within six months.
Earlier on Thursday, Technics said that it and its subsidiary have received a writ of summons from Soilbuild Reit claiming for rent and other charges plus late payment interest up to the month of May 2016 for its premises at 72 Loyang Way.
Technics' counter moved 3.1 Singapore cents lower to close at 10.7 Singapore cents on Thursday.