PDZ Declares "Strong Arguable Case" After Vessel Arrested on Bunker Claim

by Ship & Bunker News Team
Tuesday February 14, 2017

PDZ Holdings Bhd (PDZ) yesterday, in a statement filed with Bursa Malaysia, says that it has a "strong arguable case" against the recent arrest of its vessel PDZ Mewah.

As Ship & Bunker reported last month, Dan-Bunkering (Singapore) Pte Ltd (Dan-Bunkering) served a warrant of arrest on PDZ Holdings Bhd's (PDZ's) vessel PDZ Mewah in relation to the supply of bunkers.

According to the Bursa Malaysia statement, claims against the vessel include $484,119.00 plus $108,689.74 in interest by Dan-Bunkering, RM51,890.61 ($11662.12) by CCK Petroleum Sdn Bhd (CCK Petroleum), $240,422.88 by CCK Capital Ltd (CCK Capital), and $128,571.49 by CCK Petroleum (Labuan) Limited (CCK Petroleum Labuan).

PDZ says the claims are in relation to the non-payment for the supply of marine fuel oil and/or marine gas oil to the vessel, previously owned by Perkapalan Dai Zhun Sdn Bhd (PDZSB) - a former wholly-owned subsidiary of PDZ.

On December 6, 2016, PDZ says the ownership of PDZ Mewah was transferred to PDZ.

"Mohd Latip & Associates, being the solicitors of the Company, have via its letters dated 26 January 2017 and 7 February 2017 stated that they are of the view that the Company has a strong arguable case to challenge the arrest and setting aside of the claims," stated PDZ yesterday.

PDZ has previously said the vessel arrest was not expected to have a material impact on the company's financial situation for the financial year ending December 31, 2017 - a position that the company restated again yesterday.

"The financial and operational impact to the Group is expected to be minimal as the Group has made the necessary arrangements to secure slots from third party vessels as an interim measure to continue providing customers with the same services as currently provided by the Vessel," stated PDZ in its Bursa Malaysia filing.

"The expected losses will be in the range of RM90,000 ($20,226.99) to RM100,000 ($22474.44) per month, as a result of the additional costs arising from purchasing slots from third party vessels."

PDZ says the net book value of PDZ Mewah, according to audited financial statements for the financial year ending June 30, 2015, is RM4.682 million ($1.05 million).