LHN Logistics unit receives letter of demand for payment of final arbitration award

HLA Container Services (HLACS) has received a letter of demand from the lawyer representing logistics provider Pacific GSSA in relation to a final award of arbitration, the group said on Friday (Sep 22).

HLACS is a subsidiary of LHN Logistics.

In the letter of demand, Pacific GSSA is demanding payment of the awarded amount, costs of the proceedings and disbursement, as well as its share of tribunal fees and expenses amounting to S$993,853.

If payment of the total amount is not made within 21 days from the date of the letter of demand, Pacific GSSA may commence winding-up proceedings against HLACS, the group said.

LHN Logistics added that its management “is in the midst of consulting and discussing with its legal advisers” on the contents of the letter of demand and the said final award.

The group also set out the financial effects of its payment to Pacific GSSA in a table, based on its latest financial results ended Sep 30, 2022.

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Following the payment of the total amount owed to Pacific GSSA, the group’s net tangible asset per share would drop to S$6.90 from S$7.25, while its loss per share would widen to S$3.07 from S$2.69.

It stressed that these financial effects were “purely for illustrative purposes” and “are neither indicative of, nor do they represent, the actual future financial situation or any projection” of the group’s financial performance or position.

Shares of LHN closed at S$0.33 on Friday, up S$0.01 or 3.1 per cent, before the announcement. Shares of LHN Logistics last traded at S$0.225 on Sep 8.