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SETTLEMENT OF ARBITRATION
The Board of Directors wishes to announce that the Company had entered into a settlement agreement with BPS on 12 October 2016 and consequently, the dispute with BPS has been settled. In accordance to the settlement, BPS proposed and the Company had accepted a settlement sum of USD1.5 million as full and final settlement of all claims and counterclaims arising out of the shipbuilding contract dated 3rd April 2008 between BPS and Sealink Sdn Bhd (a wholly owned subsidiary of the Company), on the basis that each party is to bear its own legal costs in relation to the claims and counterclaims, including but not limited to the costs incurred in the arbitration under the Kuala Lumpur Regional Centre for Arbitration Rules 2013.
The duly signed copy of the Settlement Agreement was only received by the Company this morning, 13 October 2016, since the signing by both Sealink Sdn Bhd and BPS were done at different locations and in the evening on 12 October 2016.
SUMMARY TERMS OF THE SETTLEMENT
That within fourteen (14) days from the execution of this Settlement Agreement, BPS shall pay USD1.5 million (free of all bank and/or remittance charges) to the Company as full and final settlement of all claims and counterclaims in this reference.
The settlement would be positive for the Company as the Company will receive and recognize a gain of USD1.5 million from the settlement. The disputed amounts involved with BPS had previously been written off in the books of the Company. The receipt of the settlement sum will also improve the cash flow position of Sealink Sdn Bhd, a wholly owned subsidiary of the Company.
The settlement will be positive to the earnings and net assets of the Company for the financial year ending 31 December 2016. Notwithstanding this, the above are not expected to have any material effects on the share capital and shareholding structure of the Company.
DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
Toh Kian Sing, a Director of the Company is deemed interested in the settlement since he is a partner of Rajah & Tann Singapore LLP, the solicitors handling the case for the Company. Other than Toh Kian Sing, none of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the settlement.
The Board of Directors of the Company, having considered all factors is of the opinion that the settlement is in the best interest of the Company.
This announcement is dated 13 October 2016.
|Company Name||SEALINK INTERNATIONAL BERHAD|
|Date Announced||13 Oct 2016|
|Category||General Announcement for PLC|