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SK Jewellery unit to receive US$149k settlement from bankrupt supplier

SK Bullion, a subsidiary of SK Jewellery Group, will receive a one-time settlement payment of US$149,132 from its bankrupt supplier Miami Metals II, the Catalist-listed company announced in an SGX filing on Monday.

As part of the bankruptcy proceedings for Miami Metals II, SK Bullion had earlier filed a claim for US$746,000 it had pre-paid for an order of silver minerals placed in October. Miami Metals II, then known as Republic Metals Corp, did not fulfil the order.

Upon receipt of the settlement, SK Bullion will withdraw its statement of ownership and file an amended proof of claim in the Miami Metals II bankruptcy case.

SK Bullion will continue to have an allowed general unsecured claim against Miami Metals II for the remaining claim amount of US$596,868.

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Miami Metals II, which had been a supplier for SK Jewellery since 2017, filed for relief under Chapter 11 of the US bankruptcy code on November 2, 2018.

SK Jewellery has already made a provision for the US$746,000 claim in its results for FY2018 ended December. It will now recognise the settlement as other income in the current financial year.  

Shares of SK Jewellery last traded at 9.5 Singapore cents on Friday.