ZAQ Construction sues Muhibbah Eng (5703), CIMB Bank (1023), APH and R&M

PETALING JAYA: ZAQ Construction Sdn Bhd, the managing contractor in the Asia Petroleum Hub (APH) project, has filed a lawsuit against Muhibbah Engineering (M) Bhd and three other parties, namely CIMB Bank Bhd, APH and Lim San Peen - the receiver and manager (R&M) appointed by CIMB for APH.
According
to a filing with Bursa Malaysia, Muhibbah Engineering said ZAQ alleged
that Muhibbah was involved in the restructuring scheme proposed by Lim
in January 2012 vis-vis the APH project, thereby indicating its support
for the proposed scheme.
The proposed restructuring scheme was
subsequently called off by the receiver due to the withdrawal of
support by CIMB at the end of June 2012.
ZAQ said it was
seeking, among other things, damages against all the defendants,
including Muhibbah Engineering for such involvement and indicated
support.
Muhibbah Engineering said it was of the view that the claim brought by ZAQ was frivolous and the company would defend the case.
APH
is an ambitious project involving the construction of a petroleum hub
and bunkering facility on a reclaimed island off Tanjong Bin, Johor.
The RM1.4bil project was proposed back in 2007, but it has since buckled under severe cost overruns due to delays.
CIMB Bank was the lead financier for the project.
In
June last year, APH was placed under receivership by CIMB Bank, which
subsequently appointed PricewaterhouseCoopers to oversee the
restructuring of the project.
It was reported that APH had drawn down RM840mil of the RM1.4bil bridging loan facility provided CIMB Bank.