SINGAPORE - PACC Offshore Services said on Monday (Aug 6) that the Singapore court has ruled in its favour on its counterclaim for the return of a deposit made to Kensteel Engineering Pte Ltd over a failed Singapore property purchase, with costs to be determined at a later date.
Pursuant to the ruling, Kensteel has also discontinued its action against PACC Offshore, with an undertaking that it wil not bring any subsequent action against the offshore marine services provider.
The saga stems from Jan 2015, when PACC Offshore entered into a sale and purchase agreement (SPA) with offshore engineering outfit Kensteel Engineering for the acquisition of a Singapore property.
According to earlier filings by PACC Offshore, the acquisition was subject to Kensteel obtaining approval from Jurong Town Corporation, but the application was rejected. Kensteel then sought to keep PACC Offshore's $3.8 million deposit, and also claimed an additional $3.3 million in damages. Kensteel then reduced the damages to $2.219 million.
PACC Offshore subsequently sought a refund of the deposit from Kensteel. However, Kensteel then sought to increase its claim by $24.5 million to account for the difference in price of PACC Offshore's failed purchase, and a new one, signed with a third party, that was sealed on April 4 this year.
PACC Offshore then contested the claim, and counterclaimed for the return of the deposit as well as for interest and costs.
It said on Monday it will be taking steps, including obtaining the requisite court order against Kensteel - which is in liquidation - to enforce the judgment, adding that further announcements will be made when appropriate.
Its shares last traded at $0.305 on Aug 3.