Malysia’s PDZ Holdings Bhd has had its second feeder arrested amid unpaid bunker bills.
The 1997-built PDZ Maju was served with a warrant of arrest on 21 February 2017 by Continental Platform Sdn Bhd (CPSB) based on a claim worth RM 563,311 (USD 127,662) for unpaid supply of bunkers in December 2016.
Earlier in February, another of the company’s vessels was served with an arrest warrant also for unpaid bunkers, namely PDZ Mewah.
The warrant was served by Dan-Bunkering (Singapore), CCK Petroleum Sdn Bhd, CCK Capital and CCK Petroleum respectively, for the supply of marine fuel oil and/or marine gas oil totaled in approximately RM 3.8 million.
Following the latest warrant of arrest, the company said that it has been in talks with CPSB in order to reach an out-of-court settlement.
“However, the board is of the opinion that negotiations with CPSB have since fell through and, upon obtaining legal advice, has resolved to take steps to defend the arrest of vessel and any claims that may subsequently be filed and set it aside,” the company said.
The financial and operational impact to the company is expected to be minimal as the company pointed out that it had made the necessary arrangements to secure slots from third party vessels as an interim measure to continue providing the same services.
The expected losses resulting from hiring third party ships will be in the range of RM 45,000 to RM 50,000 per month, the company added.
The net book value of PDZ Maju based on the latest audited financial statements of PDZ for the financial year ended 31 December 2016 is RM 5.554 million.