Singapore eDevelopment asked by Coface to pay guaranteed sum of S$3.4m
SINGAPORE eDevelopment said on Tuesday the company has been called upon by the Compagnie Française d'Assurance pour le Commerce Extérieur (Coface) - an insurance company and issuer of the performance bond relating to the building works at Jurong West Neighbourhood 2 Contract 19 - to pay the guaranteed sum of S$3.4 million.
This is in accordance with the Legacy Corporate Indemnity relating to the Jurong West Performance Bond following the failure by CCM Industrial Pte Ltd (CIPL) - a previously wholly owned subsidiary of Singapore eDevelopment that was disposed off on May 21, 2014 - to pay the same pursuant to an agreement of counter indemnity relating to the Jurong West Performance Bond between CIPL and Coface.
"The company is currently in negotiations with Coface for the settlement of the company's liabilities to Coface incurred pursuant to the Legacy Corporate Indemnity relating to the Jurong West Performance Bond through payment in stages," it added.
The payment is currently not expected to have a material impact on the financial results for the current year ending Dec 31, 2015.
On June 9, Singapore eDevelopment announced that the Housing & Development Board (HDB), the project owner, had demanded payment of S$2.8 million by Coface under the Jurong West Performance Bond. The demanded sum is a partial sum claimed against the sum guaranteed of S$3.4 million under the Jurong West Performance Bond and that the HDB reserves its right to make further claims against its remaining balance.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Beijing city to subsidise domestic AI chips, targets self-reliance by 2027
Hong Kong bourse regains favour on hopes of a market revival
Chinese sellers go to TikTok school to reach buyers abroad
Gold prices set for weekly decline ahead of US inflation data
Huawei’s new phone sports latest version of made-in-China chip
Meta’s earnings flop sparks US$400 billion sell-off in tech stocks