Renaissance United's indirect subsidiary reaches out-of-court settlement with contractor

RENAISSANCE United on Friday announced that its indirect subsidiary, Hubei Zonglianhuan Energy Investment Management (HZLH), has reached an out-of-court settlement with its contractor, Wuhan Yuyun Municipal Engineering (WYME).

Renaissance United had on Nov 30 last year, announced that HZLH received a court order to pay a monetary judgement for a sum of 40.39 million yuan (S$8.27 million) to WYME. This amount represented trade payables claimed by WYME.

The principal terms of the settlement, which were approved by the court, was for HZLH to pay 28.11 million yuan over an approximate 40-month period.

The group said in a bourse filing: "At the company's level, the board is assessing alternative avenues to refinance HZLH's trade payables, including a possible fund-raising. The board will announce its plans to shareholders as and when they have been finalised."

Shares of Renaissance United closed up S$0.001 or 50 per cent at S$0.003 on Friday.