TH Heavy downplays court action's ability to botch FPSO job transfer

PETALING JAYA: TH Heavy Engineering Bhd (THHE) today downplayed the ability of a court action by Globalmariner Offshore Services Sdn Bhd (GMOS') to botch its transfer of a floating , production storage and offloading (FPSO) job to Yinson Energy Sdn Bhd.
THHE CEO Suhaimi Badrul Jamil said in a statement that the stay of the Proposed JX Nippon Contract Novation applied by GMOS before the Court of Appeal was allowed to preserve the status quo and only an interim relief pending the disposal of GMOS' appeals which had been directed by the Court of Appeal, to be disposed of by next month, February.
THHE reiterated that the Layang Development FPSO job transfer is in the final stages of negotiations.
"THHE had taken some time to finalise the Proposed JX Nippon Contract Novation, the main reason being the time taken for the formulation of a Scheme of Arrangement (SoA) that is acceptable to THHE's creditors and key stakeholders, not to mention the time required to meet the regulatory aspects of a listed company," Suhaimi said.
He added that the time it took for its SoA has led to an acceptance rate in excess of that required by the Companies Act 2016.
"Under the Main Market Listing Requirements of Bursa Securities, we are required to issue a proper and comprehensive circular to the shareholders. We are finalising the circular for Bursa's approval and once the approval is obtained we will issue the same to the shareholders for purposes of the forthcoming EGM," Suhaimi said, adding that its regularisation plan is being finalised.
THHE closed unchanged at 10.5 sen, with some 8.6 million shares changing hands.