Thursday, December 22, 2016

HSS ENGINEERS --kali ini teruk, teruk lah HSSI 这次 很。。。麻烦。。。。6千5百万。。。。。

 - Notice of Arbitration dated 22 December 2016 pertaining to Memorandum of Agreement dated 13 April 2010 ("MOA") between Malaysia Airports Holdings Berhad ("MAHB") and HSS Integrated Sdn. Bhd. ("HSSI") for the Proposed Development of New LCC Terminal and Associated Works at KL International Airport, Sepang, Selangor  Work Package EW02: Site Preparation, Earthworks and Main Drainage (Airside)
The Board of Directors of the Company wishes to announce that HSSI (an associate company of the Company) has received a Notice of Arbitration dated 22 December 2016 (“Notice of Arbitration”) from MAHB in relation to the MOA.

Particulars of the claim
MAHB is claiming a sum of RM64,617,267.17 for an alleged breach of the MOA between MAHB and HSSI.

The steps taken and proposed to be taken by HSSI
HSSI has taken steps to seek the basis for the alleged claim and supporting documents from MAHB in relation to the same. Until the date of this announcement, MAHB has failed to provide the supporting documents sought by HSSI. In the circumstances, HSSI is of the view that the alleged claim is unsubstantiated and without merit and have denied and refuted the same.

Further, the Company and HSSI are of the view that the Notice of Arbitration is premature given MAHB and HSSI are in an ongoing mediation as required pursuant to the MOA. HSSI shall take all necessary steps to defend and safeguard HSSI’s interests in the arbitration proceedings, including but not limited to seeking legal advice on the merits of the claims and whether the commencement of arbitration by MAHB is premature or wrongful given the ongoing mediation proceedings.

Financial Impact
HSSI was required to hold a professional indemnity insurance policy to the satisfaction of MAHB. Pursuant to the terms of the MOA, the Board is of the view that HSSI’s liability may be limited to the amount covered by the professional indemnity insurance policy which was submitted to MAHB.

The Board is also of the view that this will not have any material impact on the Company's order book and future earnings.

The Company will make the necessary announcements on material developments of the above matter as and when necessary.

This announcement is dated 22 December 2016.

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