01/06/2012 - 15:49

Emeco launches litigation over $US1.95m debt

01/06/2012 - 15:49

Bookmark

Save articles for future reference.

Earthmoving contractor Emeco is pursuing legal action against an Indonesian mining contractor over $US1.95 million in debts.

Emeco has alleged that its Indonesian subsidiary had entered a binding equipment rental agreement with Indonesia’s PT Kideco Jaya Agung last year.

Under the agreement, Kideco utilised Emeco’s equipment for two months, incurring rental charges of $US1.95 million, Emeco said.

Emeco said today that it has commenced debt recovery action against Kideco in Jakarta’s district court in an attempt to recoup the funds.

Kideco responded by filing a loss and damages claim for $US22.3 million, which Emeco has dismissed as baseless and without merit.

The damages relate to losses arising from a disruption of Kideco’s port operations, which Kideco claims were a result of Emeco equipment falling from a barge.

Emeco said the Kideco claim would be challenged and defended “vigorously”.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options