Malaysia: Sealink Starts Arbitration Against Boustead Penang Shipyard
The Board of Directors of Sealink International Berhad (SEALINK) announced, Dec. 31, that an entity within the SEALINK Group has commenced Arbitration against Boustead Penang Shipyard Sdn Bhd (BPS). The Notice of Arbitration was sent by Rajah & Tann LLP.
Sealink has written to the Kuala Lumpur Regional Centre to request for Arbitration with BPS in relation to disputes between a wholly owned subsidiary, Sealink Sdn Bhd (SSB) and BPS under a Shipbuilding Contract dated 3 April 2008.
SSB and BPS entered into a shipbuilding contract on 3 April 2008 to build two units of 7,000 dwt oil carriers / chemical carriers.
SSB claims against BPS, inter alia, the sum of USD4,935,000 which is to be refunded and/or paid to SSB by BPS under the Contract and/or for interest payable by BPS to SSB under the terms of the Contact and/or for losses and/or expenses incurred by SSB pursuant to BPS breaches of the Contract.
The Board of Directors of SEALINK, having considered all factors is of the opinion that the arbitration is in the best interest of the Company.
Press Release, January 3, 2013