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    POSH takes legal action to recover payment

    Company News // March 24, 2016

    The Board of Directors of PACC Offshore Services Holdings Ltd has announced that its wholly-owned subsidiary, POSH Semco Pte Ltd has commenced legal action in the Kingdom of Saudi Arabia against and, on 21 March 2016, initiated the process of serving court papers on Makamin Offshore Saudi Ltd to recover the total sum of approximately SAR24.4 million (approximately US$6.6 million) owed to it for the charter hire of three vessels owned by the group and related expenses.

    The group has also initiated the process of serving court papers on Makamin in relation to an application for a court order in the Kingdom of Saudi Arabia to compel Makamin to carry out their agreement to novate their sub-charters for two of the vessels to the group’s nominee.

    The outstanding sum represents approximately 0.8 per cent of the group’s latest announced unaudited net tangible assets as at 31 December 2015. Based on the latest announced unaudited consolidated financial statements of the group for the financial year ended 31 December 2015, the group’s loss per share for the financial year ended 31 December 2015 was US$0.072. Assuming the group made a provision for such outstanding sum, its loss per share would be US$0.076.

    POSH has also served on Makamin a notice to withdraw one of the vessels and will be suspending performance of that charter party pending withdrawal of the Vessel. The company has the right to terminate the remaining charter parties.

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