Dolphin International's Indonesian unit sues PT Arka Jaya Mandiri

PETALING JAYA: Dolphin International Bhd‘s subsidiary Dolphin Indonesia has filed a writ of summons in the High Court of Indonesia against PT Arka Jaya Mandiri in relation to a delay in completion of civil works.

Dolphin International’s board of directors said in a Bursa Malaysia that it has served a letter of demand to PT Arka via its solicitors, in relation to the additional expenses incurred mainly due to the delay in completion of civil work awarded to the defendant on January 3, 2013, for which there has been no response from PT Arka.

The group is seeking Rp12,542,812,878 (RM3.58 million) in claims from PT Arka. The claims was calculated on a formula of 6% to the total expenses incurred to complete the unfinished and rectification works, as well as the additional expenses incurred due to the delayed in completion of civil work.

Dolphin said PT Arka's actions resulted in it being compelled to take over and complete the project, which it claims brought damage to its reputation and resulted in the loss of future business due to the failure on PT Arka’s part to fulfill its contractual obligations.

“There is no material impact to the Dolphin International arising from this suit except the estimated legal fee cost of Rp.650,000,000-00),” the board said on the impact of the suit.

Dolphin's shares gained 6.67% to close at 16 sen with some 1.51 million shares done.