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Sinwa settles dispute involving two units
OFFSHORE supply and logistics player Sinwa Ltd on Friday announced that it has entered into two settlements over disputes related to its wholly owned unit Sinwa SS (HK) and another unit Nordic International Limited (NIL), for which Sinwa owns 50 per cent.
In the first settlement, BGP Geoexplorer Pte Ltd will pay NIL S$750,000. In the second settlement, Morten will pay Sinwa SS (HK) US$500,000 within five years with an option to extend for three years after that five-year period; and Sinwa SS (HK) will be paid the BGP settlement sum and the entire balance in NIL's existing bank accounts.
Once Sinwa SS (HK) receives the BGP settlement sum and the balance of NIL's bank accounts, Sinwa SS (HK) shall transfer its shareholding in NIL to Morten.
"The deeds of settlement are expected to have a positive impact on the group's income statement for the fourth quarter of the financial year ending December 31, 2017, being the reversal of impairment loss which was provided in the previous year," Sinwa said.