MATERIAL LITIGATION
PESTECH INTERNATIONAL BERHAD (PESTECH) FURTHER ANNOUNCEMENT ON NOTICE OF ARBITRATION SERVED BY SYARIKAT PEMBENAAN YEOH TIONG LAY SDN. BHD. ON PESTECH PURSUANT TO THE PARENT COMPANY GUARANTEE ISSUED ON BEHALF OF PESTECH TECHNOLOGY SDN. BHD. (PTECH)

PESTECH INTERNATIONAL BERHAD

Announcement_PESTECH

Further to our announcement dated 20 October 2023 in relation to the Notice of Arbitration dated 18 October 2023 (“Notice”) served by Syarikat Pembenaan Yeoh Tiong Lay Sdn. Bhd. (“SPYTL”) to PESTECH under the Asian International Arbitration Centre (“AIAC”) Arbitration Rules 2023 (“Arbitration”) in relation to the Parent Company Guarantee issued by PESTECH to SPYTL (“PCG”) to guarantee the due performance of the Sub-Contracting Agreement dated 18 December 2018 entered between SPYTL and PTECH, a subsidiary of PESTECH, for a fixed price, date certain, turnkey engineering, procurement, construction and maintenance contract relating to the electrification systems relating to and for the Project known as the Design, Construction, Supply, Installation, Completion, Testing, Commissioning and maintenance of the Electrified Double Track from Gemas to Johor Bahru (“Sub-Contract”), the Board of Directors of PESTECH wishes to inform that SPYTL is broadly seeking for reliefs as follows pursuant to the terms in the PCG of: -

  1. a declaration that PESTECH has breached/defaulted under the PCG;
  2. a declaration that PESTECH is responsible and liable for any liability arising from or in connection with the breach/default by PTECH of the Sub-Contract;
  3. a declaration that PESTECH is obliged to pay and make good to SPYTL forthwith and fully indemnify and keep indemnified SPYTL against any costs, losses, claims, damages, expenses, and proceedings occasioned to or suffered by SPYTL arising from the termination of the Sub-Contract as if PESTECH was the primary obliger;
  4. a declaration that PESTECH is obliged to indemnify and keep indemnified SPYTL against all costs, losses, damages, expenses, proceedings or liability arising from or in contemplation of the non-observance or non-performance by PESTECH of its obligations and/or covenants under the PCG;
  5. damages (to be assessed) in respect of the breaches of the PCG;
  6. appropriate reliefs (including damages) touching on the continuing breaches by PTECH and PESTECH Sdn. Bhd. on the Construction Equipment that SPYTL claimed that they are entitled to take over and use;
  7. appropriate reliefs (including damages) touching on the continuing breaches by PTECH on the Performance Bond issued by PTECH to SPYTL in which SPYTL claims to be entitled to call upon; and
  8. pre-award and post-award interest on all sums awarded, costs and expenses arising out of the arbitration and such other relief as the circumstance require.

PESTECH vigorously disputes the above reliefs that SPYTL is seeking for and will raise a detailed response in the Response to the Notice of Arbitration that will be served in due course.

This announcement is dated  23 October 2023.

 

Announcement_PESTECH

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