Nam Cheong contests cancellation of contract for accommodation work bargeYard News // March 30, 2016
Nam Cheong Limited says it has received a Notice of Termination/Cancellation from Petra Offshore Limited (POL), a wholly-owned subsidiary of Perdana Petroleum Berhad, purporting to terminate/cancel a contract in relation to the sale of an accommodation work barge, entered into between POL and Nam Cheong International Ltd, a wholly-owned subsidiary of the company, on 23 June 2014.
"The group’s position is that the termination/cancellation is not valid," said Nam Cheong, "and is tantamount to a repudiation of the contract by POL, pursuant to which the group is entitled to compensation.
"The group intends to fully enforce its rights against POL and, if necessary, seek legal redress. The purported termination/cancellation of the contract is expected to have an impact to the earnings of the group for the financial year ending 31 December 2016, the extent of which cannot be conclusively ascertained at this point in time."