I think tomorrow LCL will fly. Below is the announcement.
7177 LCL LCL CORPORATION BHD
DESIGN, SUPPLY & INSTALLATION FIT-OUT WORKS (TIARA UNITED TOWER) IN DUBAI
DESIGN, SUPPLY & INSTALLATION FIT-OUT WORKS (TIARA UNITED TOWER) IN DUBAI ("THE
PROJECT")
Reference is made to the earlier announcement dated 9 January 2008 (Ref:
LC-080108-6011)whereby LCL Corporation Berhad ("LCL") via its Dubai based
company, LCL Interiors Contracting LLC ("LCLIC"),was awarded the contract of
design, supply and installation of interior Fit-out works for Tiara United
Tower, Dubai ("the Project") at a total contractual sum of AED156,000,000. LCLC
had received an advance payment of 25% amounted to AED39,000,000 and subsequent
payments were based on the monthly progress claims based on the certification
of work done.
LCLIC has on 7 February 2009 and subsequently on 10 February 2009, received
notification and further clarification from the Main Contractor, Arabtec
Construction (LLC) ("Arabtec") that the employer, Zabeel Investments ( the
owner of the Project) has decided to change the function, purpose and character
of the Project. This has resulted in change of work scope by Arabtec, thus
resulting in the omission of the complete interior-fit out works for the
Project undertaken by LCLIC.
In consequence of the above changes,
LCLIC has been notified by Arabtec to
submit its final payment claim for costs, expenses and all other incidental
entitlements in respect of the Project.
Taking into consideration the potential
final payment settlement from Arabtec, the above changes shall have no material
financial impact to the Group's earnings.
This announcement is dated 12 February 2009.
Actually, this is BAD NEWS...
What it means is that, previously on 9th Jan 2008, they were awarded the contract
However, on 10th Feb 2009 LCL were told that the project has been put on hold/cancelled/whatever and that LCL needs to submit its FINAL PAYMENT CLAIM FOR COSTS.
Depending on the stage of their work, they would need to make a claim for their costs... if the project is 50% completed, probably their claim will be 50% too?
Also note the 2nd bolded part. Taking into consideration
Potential final payment... means they not even sure if they're gonna get paid... Got potential only..