Yinson has filed documents in court to allow for transfer of TH Heavy Engineering's Layang FPSO contract

PETALING JAYA: Yinson Holding Bhd’s associate company Yinson Energy Sdn Bhd has submitted affidavits to the Kuala Lumpur High Court to confirm it has no objection to a proposed novation application made by TH Heavy Engineering Bhd to transfer Layang floating production storage and offshore (FPSO) to it, on condition that the proceeds from the exercise are dealt with in accordance to court orders.
TH Heavy Engineering had applied for leave to enter into and complete a proposed novation of the contract for provision of Engineering, Procurement, Construction, Installation & Commissioning and leasing for Layang FPSO facilities via a charter contract established between JX Nippon Oil & Gas Exploration (Malaysia) Limited and TH Heavy Engineering on November 27, 2004, with Yinson Energy.
“The affidavits confirm Yinson Energy’s position that it has no objections to the aforesaid application made by THHE, subject to finalisation of the terms of the proposed novation by the parties thereto and/or required by any regulatory authority (if any) and that the proceeds of the proposed novation (being consideration payable by Yinson Energy to TH Heavy Engineering for the novation of the Charter Contract) to be set aside and kept in a specific account to be dealt with in pursuance of such orders made by the court,” Yinson’s board of directors said in a Bursa Malaysia filing.

The proposed novation is to be effective from the date all conditions precedent to the novation (which include among others the court order referred to above being obtained on terms satisfactory to the Company and the full payment of the consideration payable by Yinson Energy to TH Heavy Engineering) have been fulfilled and satisfied.
The terms of the proposed novation are being finalised by the parties while, TH Heavy Engineering application has been fixed for case management.
Yinson's shares fell 1.03% to RM3.86 with some 1.47 million shares done. TH Heavy Engineering's share price fell half a sen to 11 sen, with some 2.8 million shares changing hands.