MATERIAL LITIGATION ARBITRAL PROCEEDINGS BY PELABUHAN TANJUNG PELEPAS SDN BHD AGAINST PIONEER SMITH (MALAYSIA) SDN BHD AT THE KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION
|MMC CORPORATION BERHAD|
ARBITRAL PROCEEDINGS BY PELABUHAN TANJUNG PELEPAS SDN BHD AGAINST PIONEER SMITH (MALAYSIA) SDN BHD AT THE KUALA LUMPUR REGIONAL CENTRE FOR ARBITRATION
We refer to our announcement of 25 April 2014.
MMC Corporation Berhad (“MMC” or “the Company”) wishes to announce that its subsidiary, Pelabuhan Tanjung Pelepas Sdn Bhd (“PTP”) has been notified by its solicitors that the final arbitral award (save for costs) for the arbitral proceedings initiated by PTP against Pioneer Smith (M) Sdn Bhd (“PSM”) at the Kuala Lumpur Regional Centre for Arbitration (“KLRCA”) has been received by the parties on 14 October 2016 (“the Award”).
In the Award, the arbitral tribunal dismissed PTP’s claim, inter alia, for a declaration that the Sub-Lease Agreement of 28 June 2005 had been determined, and for vacant possession of the land sub-leased to PSM (“Land”). The arbitral tribunal however allowed PTP’s claim for outstanding rentals in the sum of RM2,642,349.60 being the agreed rentals of the Land that had to be paid and that had not been paid for the years 2010 up to 2015. The arbitral tribunal also allowed PTP’s claim for outstanding charges in the sum of RM35,836.50.
In respect of PSM’s counterclaim, the arbitral tribunal held that the causes of action relied on by PSM has no merits and dismissed PSM’s counterclaim for losses and damages of SGD42,751,000.00, RM17,550,000.00 and US$5,970,000.00.
FINANCIAL IMPACT AND THE INTEREST OF DIRECTORS AND SUBSTANTIAL SHAREHOLDERS OF MMC
The arbitral proceedings is not expected to have a material impact on the earnings and the net assets of the MMC Group for the financial year ending 31 December 2016.
None of the directors or substantial shareholders of MMC or persons connected with them has any interest, direct or indirect in the aforesaid arbitral proceedings.
This announcement is dated 14 October 2016.
|Company Name||MMC CORPORATION BERHAD|
|Date Announced||14 Oct 2016|
|Category||General Announcement for PLC|