ZAQ Construction Sdn Bhd, the managing contractor in the Asia Petroleum Hub (APH) project in Johor, has filed a suit against several parties including CIMB and Muhibbah Engineering (M) Bhd over a restructuring scheme.
Muhibbah said on Monday ZAQ had filed the suit against CIMB, APH, Lim San Peen (the receiver & manager appointed by CIMB over APH) and Muhibbah.
"ZAQ is alleging Muhibbah's involvement in the restructuring scheme proposed by the receiver & manager in January 2012 vis-vis the APH project, and thereby indicating its support for such proposed scheme," it said.
Muhibbah said the proposed restructuring scheme was subsequently called off by the receiver after CIMB withdrew its support in end June 2012.
ZAQ is seeking, amongst others, damages against all the defendants, including Muhibbah for such involvement and indicated support.
"Muhibbah is of the view that the claim brought by ZAQ is frivolous and the Company will defend the case," it said.
APH is the developer of a petroleum storage/blending/distribution terminal under construction. The project is located on a 100-acre reclaimed island at Tanjung Bin, about 15 minutes from Iskandar, Johor.
The project was planned for multiple product tanks of a total capacity of 924,000 cu m with inter-tank connectivity for blending options and space for dedicated multiple users.
CIMB Bank Bhd pulled out from a debt restructuring for APH, delaying the latter's payment for construction works done by Muhibbah.
To recap, Muhibbah was awarded an RM820mil contract for marine piling and jetty works of APH's oil storage and bunkering facility on a reclaimed island off Tanjung Bin, Johor. StarBiz has earlier reported that Muhibbah had completed RM630mil worth of works and had yet to receive payment for RM371mil.
In February, CIMB came into the picture for a restructuring exercise. It was rumoured that Muhibbah and CIMB could end up as shareholders in APH through a debt-equity swap.
CIMB owned 75% of the unsecured and secured debt of APH each. However, it was reported that not all the APH creditors agreed to convert their debt to equity, which may stall the restructuring of APH because the scheme would need 75% creditors' support to be carried out. - The Star