Red Sea International Co. said its fully-owned subsidiary, Red Sea Housing Services (Ghana) Ltd, has filed its claim against US-based OPI International Group Ltd in Angola and will proceed with next steps in accordance with local Angolan laws.
The company’s board has also approved the withdrawal of the legal proceedings in Houston, Texas, USA to avoid engaging in complex litigation across various jurisdictions, the company said in a bourse statement.
Final recovery and time-frame are difficult to be assessed at this stage, as there are other lenders and creditors involved whose claims are undefined.
Therefore, as a matter of prudence the company, in consultation with its auditors, has taken additional provisions in its books during 2018. The current net exposure on this receivable has been reduced to SAR 33.2 million, the balance having been provided for, the statement added.
In August 2016, Red Sea filed a legal case against a subsidiary of US-based OPI International Group Ltd over $24.5 million in outstading payments, according to data compiled by Argaam.
Red Sea had inked two agreements with the OPI subsidiary in 2011 and 2014 to build residential complexes in Angola. However, OPI failed to settle the overdue payments.
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