Reference is made to the announcement dated 10 June 2016 in respect of the above matter.
The Board of Directors of Favelle Favco Berhad (“FFB”) wishes to announce that Carigali Hess Operating Company Sdn Bhd (“CHOC”) has filed arbitration proceedings against Favelle Favco Cranes (M) Sdn Bhd (“FFCM”), a wholly owned (but not a major) subsidiary of FFB in respect of a crane accident in 2012 at a CHOC platform.
CHOC is seeking an award for a sum of USD 6,322,400-68 in respect of loss, costs of removal for the damaged crane, various related costs of a temporary crane and a replacement crane as well as interest and legal costs.
It is expected that there will be no financial and operational impact to FFB as notwithstanding the outcome of the arbitration proceedings, FFCM is fully covered by insurance.
FFCM’s insurers has appointed lawyers to defend the claim.
This announcement is dated 13 June 2016.