KOP Northern Lights (KOPNL), a unit of Catalist-listed real-estate player KOP, has received payment of 158.4 million yuan (S$30.6 million) from an arbitration case involving the development of the world’s largest indoor ski resort in China, it announced in a Wednesday (Dec 14) statement.

The company had earlier received another payment from the arbitration proceedings of 235.2 million yuan (S$44.9 million) in November. After deducting expenses, KOP’s total net proceeds from the case is 392.2 million yuan.

With the latest payment, KOPNL has fully withdrawn from the development of the ski resort, called the Wintastar Shanghai resort, into which it had invested 300 million yuan.

Back in November 2016, KOPNL had entered a joint-venture framework agreement with Shanghai LuJiaZui Zhi Mao Investment (SLJZZM) and Shanghai Harbour City Development (Group) Co (SHCD), to develop the resort.

The following year, KOPNL entered an investment agreement to incorporate a joint-venture company, Shanghai Snow Star Properties, together with SLJZZM and Shanghai Hong Bin Properties, a unit of SHCD. KOP contributed 30 per cent of the registered capital, or 300 million yuan, in the JV company.

However, around 2020, disagreements arose between the JV partners, and the case was brought to the Shanghai International Arbitration Centre.

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On Nov 29, 2021, the arbitration centre ruled that the framework and investment agreements were terminated as of Dec 20, 2020, and that the other parties would acquire KOPNL’s 30 per cent stake in the JV company at a fair-market value.

Leny Suparman, the chief executive of KOP, said that with the closure of the case, KOP is consolidating existing projects and exploring ventures in new markets.

“We are happy and relieved on the final closure of the case. The monies received will generate a healthy cash inflow for KOP, reducing its liabilities as we repay all shareholders’ loans and save on interest costs. It is a great way to end the year.”

KOP shares closed at S$0.048 on Wednesday, down 5.9 per cent or S$0.003.