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POSH to defend suit claiming $5m

POSH to defend suit claiming $5m
PACC Offshore Services Holdings (POSH) has announced that the company is defending a legal suit filed by Kensteel Engineering over a sale and purchase agreement of a property in Singapore.

The claimant, Kensteel Engineering, has claimed for damages and retention of paid deposit totalling SGD7.1m ($5m) which it alleged it suffered as a result of the sale of the property not having been completed.

Kensteel Engineering believed that it is entitled to forfeit the deposit paid by POSH.

Back in January this year, POSH entered into a sale and purchase agreement with Kensteel Engineering to buy a property.

The acquisition deal is subject to Kensteel Engineering obtaining approval from Singapore’s developer and manager of industrial estates, JTC Corporation. But JTC rejected the deal and POSH accordingly sought a refund of the deposit paid to Kensteel Engineering.

Kensteel Engineering is claiming for damages of SGD3.3m and to keep the paid deposit of SGD3.8m, amounting to a total of SGD7.1m.

“This represents approximately 9.4% of the group’s audited net profit after tax for the financial year ended 31 December 2014 and less than 0.1% of the group’s audited net tangible assets as at 31 December 2014,” POSH said.

“The company intends to defend the claim vigorously and is taking legal advice,” it added.