By Alexander Winifred
KUALA LUMPUR (Jul 11) -- Malaysia's Boustead Heavy Industries Corp said Tuesday it has received a letter from the Ministry of Defence claiming damages amounting to 53.2 million ringgit ($12.38 million) and 19.3 million euros ($21.99 million) due to breach of contractual obligations by its 60%-owned unit.
Boustead Heavy Industries' board "is in the opinion" that Boustead DCNS Naval Corp "has adequate basis to defend and to appeal against the Claim," it said in a filing.
The claims relate to alleged breach of obligations under the in-service support for the Royal Malaysian Navy SCORPENE Submarines Contract.
The claim is expected to have a material financial and operational impact on the group for the 2017 financial year, it added.
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