CSE Global has agreed to pay US$8 million ($10.5 million) to a claimant who lodged arbitration proceedings against the company’s wholly-owned subsidiary, Hankin Environmental Systems. The full and final settlement was made on Sept 8.
On Sept 3, Hankin’s customer instituted arbitration proceedings against the former in the US citing losses from Hankin’s delays in a project the customer was working on.
Hankin was engaged by the claimant to perform certain engineering, materials procurement and installation services on a construction project in the US. The claimant was the general contractor of the project.
According to CSE Global 544 , Hankin alleged that the delays were caused by supply chain disruptions stemming from Covid-19. The delay, according to Hankin, was also due to the claimant’s instructions to vary the approved existing plan.
The settlement is expected to adversely impact CSE Global’s financial position for the FY2024 ending Dec 31 as the company will record the settlement sum in that FY.
Shares in CSE Global closed at 47 cents on Sept 9.
