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Sime Darby unit proceeds to pay contractor as ordered by Chinese court

The Edge logo The Edge 14/1/2020 Syahirah Syed Jaafar
a red stop sign sitting on the side of a brick building © Provided by The Edge

KUALA LUMPUR (Jan 14): Sime Darby Bhd said its 36.6%-owned joint venture (JV) company Weifang Port Services Co Ltd (WPS) has accrued in its accounts, a 711 million yuan (RM427 million) outstanding sum due to Chinese contractor CCCC Tianjin Dredging Co Ltd.

Meanwhile, the late payment interest to Tianjin Dredging is being accrued progressively, Sime Darby said in a filing today.

The 711 million yuan and late payment interest form the total outstanding sum that WPS was ordered by China’s Maritime Court at Qingdao, Shandong Province in July 2019, to pay to Tianjin Dredging.

Tianjin Dredging was engaged to construct a 35,000 deadweight tonne (DWT) main channel in Weifang, Shandong Province.

Sime Darby said WPS had in August appealed against the court’s decision, to dispute the calculation of late payment interests.

“On Jan 10, 2020, WPS informed the company that it had received the court’s final decision on Dec 20, 2019, which ordered WPS to pay the outstanding sum of 711 million yuan and late payment interest to the plaintiff,” it added.

Sime Darby closed one sen or 0.45% higher at RM2.23 today, for a market capitalisation of RM15.17 billion.

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