Sembcorp Cogen, a wholly-owned subsidiary of Sembcorp Industries U96 , has accepted an offer to settle and has entered a consent order for US$50.9 million ($65.5 million) from Lim Oon Kuin and two other members of the Lim family, according to an Oct 1 release.
On April 22, 2020, the group announced that Sembcorp Cogen had terminated a gasoil supply and storage agreement with Hin Leong Trading and had commenced legal proceedings to assert its ownership of gasoil reserves stored by Universal Terminals, an affiliate of Hin Leong Trading.
Parties have agreed to the settlement without admission of liability for the Lims, reads the release.
The settlement is subject to formal approval of the court, with Sembcorp Cogen expected to lodge a proof of debt for US$50.9 million with the bankruptcy trustees of the Lims at the appropriate juncture.
Notwithstanding the settlement, Sembcorp Cogen will continue to pursue its claims against Universal Terminals.
Given the uncertainty surrounding the recoverability of amounts from the Lims, the settlement is not anticipated to significantly affect Sembcorp’s earnings per share or net tangible assets per share for the financial year ending Dec 31.
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Shares in Sembcorp Industries closed 0.3 cents lower, or down 0.54%, at $5.51 on Oct 1.
