CSC Holdings

CSC Holdings: Revealed that it has $5m outstanding progress claims against main contractor Alpine Bau for its foundation works at the three MRT Downtown Line stations (King Albert Park, Sixth Avenue and Tan Kah Kee). The group's subsidiaries were awarded the foundation contracts by Alpine, and had subtantially completed the physical works at the stations. Alpine Bau, Austria's second largest construction firm, had won the contract for the design and construction of the three stations and tunnels along Downtown Line Stage 2 in 2009, and has since been plagued by financial troubles which led to the firm filing for insolvency on 19 Jun. CSC reported its 4QFY13 results in May, with the loss of $2m mainly due to a $3.6m provision of doubtful debts from Poh Lian Construction (a subsidiary of United Fiber System), that applied for judicial management on 13 Mar. Construction works at the three stations have been put at a halt as LTA looks to appoint a new contractor to take over the project. In addition, LTA will be working closely with the appointed contractor to continue engaging the existing subcontractors (CSC Holdings as one of them) to ensure a minimal impact on the schedule.