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Tuesday, June 28, 2011

No write-down for APH project, says Muhibbah (Edge)

MUHIBBAH ENGINEERING (M) BHD [] believes it will not have to write down the RM300 million in outstanding payments due from its major client Asia Petroleum Hub (APH), which was reported to be in receivership.

Muhibbah managing director Mac Ngan Boon said on Tuesday, June 28 that APH was actively speaking to potential investors and hoped for a resolution "soonest".

"We do not believe there will be a write down. We believe there are other solutions," Mac said after its AGM.

He was commenting on recent news that APH had been placed under receivership by CIMB Bank Bhd mainly because the former was unable to bring in other investors to help fund the development and to repay its borrowings.

To recap, APH is the developer and operator of the APH oil terminal in Johor and had awarded Muhibbah the marine piling and jetty works worth RM820 million.

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