A joint venture company of Australian gaming operator The Star has been served with a process in Queensland courts by the contract builder for its Queen’s Wharf Brisbane project.
The opening of the project has been delayed until at least April of next year, amongst financial issues at The Star stemming from legal proceedings against it by state and national authorities and a proposed tax increase.
In a note early Monday, The Star noted that its Destination Brisbane Consortium ‘has been served with an originating process in the Supreme Court of Queensland by Multiplex Constructions Qld Pty Ltd, the contract builder for the Queen’s Wharf Brisbane project’.
Destination Brisbane Consortium (DBC) is 50 percent owned by The Star, while 25 percent of the company is controlled by each Chow Tai Fook Enterprises and Far East Consortium (both Hong Kong-listed partners in The Star).
The group notes that DBC ‘has been in ongoing discussions’ with the contractor ‘regarding purported claims for additional costs, extensions of time and damages, which DBC has disputed’.
The group notes that ‘DBC also has claims against Multiplex for liquidated damages payable for delay in achieving key milestones under the contract.’.
The court is now procuring declarations ‘regarding extensions of time, relevant milestone dates, liquidated damages, variations and certain other matters, including potential sums payable, in connection with the contract and seeks various orders in relation to those matters’.
DBC plans to ‘defend the proceedings’.