POSH hit by writ over property dealCompany News // September 8, 2015
The Board of Directors of PACC Offshore Services Holdings Ltd have conmfirmed that on 2 September 2015 the company was served with a writ of summons and statement of claim by Kensteel Engineering Pte Ltd.
In January 2015, the company entered into a sale and purchase agreement with the claimant for the acquisition by the company of a property in Singapore from the claimant. The acquisition is subject to the claimant obtaining approval from Jurong Town Corporation (JTC).
The application by the claimant for such approval was rejected by JTC and the company has accordingly sought a refund of the deposit paid under the SPA from the claimant.
In the claim, the claimant has claimed for, amongst others, a declaration that it is entitled to forfeit the deposit (including goods and services tax). The claimant has also claimed for damages of approximately S$3.3 million which it alleges it suffered as a result of the sale of the property not having been completed.
The total sum of the deposit (S$3.8 million) and the claim for damages (approximately S$3.3 million) is approximately S$7.1 million. This represents approximately 9.4 per centy of the group’s audited net profit after tax for the financial year ended 31 December 2014 and less than 0.1 per cent of the group’s audited net tangible assets as at 31 December 2014.
POSH said it intends to defend the claim "vigorously" and is taking legal advice.