Bursa Announcements

Bintulu Port Holdings Berhad (“BPHB”) wishes to announce that its wholly owned subsidiary, namely Samalaju Industrial Port Sdn Bhd (“SIP”) was served with a Writ of Summons and Statement of Claim dated 29.7.2016 filed by Macon Charter B.V., a company incorporated in the Netherlands (“Macon”) through Messrs Joseph & Partners (“JP”) Advocates & Solicitors who named Inai Kiara Sdn. Bhd. (“IK”) as the 1st Defendant, Integrated Marine Works Sdn. Bhd. (“IMW”) as the 2nd Defendant and SIP as the 3rd Defendant. The Defendants are companies incorporated in Malaysia.

The action was initiated for alleged failure of the Defendants to effect payment to Macon under the Agreement of Hire of Dredging Equipment (“Charter Contract”) dated 17.01.2015 entered into between Macon and IMW for the charter of a dipper-dredger known as “Enola Gay”. IK on behalf of IMW has entered into Amendment to the Charter Contract dated 16.10.2015 for the extension of the said charter hire. SIP has awarded Contract No: SPMU/15/2012 – The Construction and Completion of Proposed Samalaju Port Development Project at Samalaju, Bintulu, Sarawak, Malaysia – Capital Dredging and Reclamation Package for Phase 1 Works to IMW (“the Contract”). In relation to the Contract, SIP vide an alleged Letter of Undertaking dated 27.08.2015 has agreed to the request of IMW for direct payment to Macon amounting to Euro 2.0 Million whereby all sums due and payable to IMW are to be deducted from IMW’s interim progress payments. SIP had remitted payment totalling Euro 1.8 Million to Macon on 30.12.2015 and 15.04.2016 respectively.

Macon sought the following relief against SIP:-

1. The sum of Euro 5,841,327.77;
2. Late payment penalty;
3. Judgement Interest;
4. Costs; and
5. Any further or other relief that the Honourable Court may deem fit and just.

The Case Management was heard on 17.08.2016 at the Kuala Lumpur High Court and SIP has retained the services of Messrs. Shearn Delamore & Co (“SD”) to act on its behalf. On the said day, the Court gave the following directions and there is no trial dates being fixed for this action:-

1. The Defendants are to file their respective Defences on or before 02.09.2016;
2. The Plaintiff to file its reply on or before 15.09.2016;
3. All interlocutory applications are to be filed within 3 weeks therein;
4. The next Case Management is scheduled on 27.09.2016

SD has also written in to JP requesting for Macon to furnish security for SIP’s cost of resisting the action in the sum of RM150,000.00 within 48 hours from 18.08.2016 as Macon is not a resident within the jurisdiction of the Malaysian High Court and has no known assets within Malaysia. Failing to do so, SIP will apply to the Court for an order to compel Macon to furnish the said security for costs. SD has also served upon JP a notice to produce specific documents that was identified in the Statement of Claims of the Plaintiff.

Having considered the facts and evidence, SIP is of the view that it has a complete defense against Macon’s claim. In that context, SIP is considering to apply to strike out Macon’s claim against it. SIP is also of the view that this case has no significant impact on the Group as there is no stoppage of business activities of SIP nor the other subsidiaries of the Bintulu Port Holdings Berhad Group. Further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 23 August 2016.