Icon Offshore hit with lawsuit over breach of contract
A subsidiary of Malaysian offshore support vessel provider Icon Offshore has been hit with a lawsuit over a breach of contract in relation to the construction of a platform supply vessel (PSV).
In a recent Bursa Malaysia filing, Icon Offshore said that its subsidiary, Icon Ship Management (ISM), was served a writ of summons and a statement of claim from Labuan Shipyard & Engineering (LSE).
The suit arises from disputes in connection with an agreement dated Sept 30, 2011, between ISM and LSE regarding the construction of a vessel, more precisely – a 77-meter DP2 diesel-electric platform supply vessel (PSV).
Icon Offshore said in its statement that LSE was seeking general damages, RM13.94 million ($3.37 million) in outstanding claims consisting of costs allegedly incurred between October 1, 2014, to March 9, 2015, for vessel maintenance and services.
According to Icon Offshore, LSE also claims that ISM did not make prompt and punctual payment of all milestone payments, which resulted in LSE incurring finance and interest charges.
In addition, LSE claims that there was a shortfall in payment for what was described as “Milestone No. 11 by ISM”.
The filing also states that Labuan Shipyard in Engineering is requesting an interest at the rate of five percent per year on the outstanding amount from the date of judgment to the date of full and final settlement, as well as costs and “other reliefs as the Court deems just.”
Icon Offshore said: “Having received legal advice, ISM believes that there are good grounds to resist various claims made in the suit and will defend the suit.
“The Suit is not expected to have any significant financial and operational impact to ISM and the company,” the company stated.
Offshore Energy Today Staff
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