SunMoon unit reaches agreement with supplier to repay S$1.2m in instalments

FRUITS distributor SunMoon Food Company has entered into a settlement agreement with a supplier, Wismettac Foods, for the US$1.2 million owed by its wholly-owned subsidiary SunMoon Distribution & Trading.

The subsidiary has agreed to pay the outstanding sum by instalments to the Japanese food supplier, SunMoon said in a regulatory update on Thursday.

Meanwhile, the group's controlling shareholder, YiGuo General Food, has also guaranteed the payment of the outstanding sum.

The claim will have no material adverse impact on the financial position and performance of the group, SunMoon had said in its Dec 9, 2019 announcement on the matter.

SunMoon shares ended at S$0.051 on Thursday, up 0.2 Singapore cent or 4.1 per cent before the announcement.