Icon Ship Management sued for delayed payments in newbuilding project

Icon Ship Management (ISM), a wholly-owned subsidiary of Malaysia’s Icon Offshore, has been served a writ of summons by the Kuala Lumpur High Court in connection with an agreement dated September 30, 2011 between ISM and local builder Labuan Shipyard and Engineering (LSE) in relation to the engineering, construction, testing, and delivery of a 77-metre platform supply vessel (PSV).

According to the suit, LSE had submitted a claim against ISM for the latter’s failure to make prompt and punctual payment of all milestone payments allegedly resulting in LSE incurring finance charges and interest charges.

LSE further alleges that ISM had a shortfall in the payment of one milestone.

In all, the suit alleges ISM owes LSE an outstanding sum of approximately RM13.94 million (US$3.37 million).

ISM said in a statement that, after having received legal advice, it has “good grounds to resist various claims made in the suit” and that it will “defend the suit.”