Coastal Contracts wins US$4.35m in arbitration petition

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KUALA LUMPUR (Oct 30): Coastal Contracts Bhd said today it has won an arbitral award totalling US$4.35 million in relation to a petition filed against two sellers and two guarantors in December last year, with regards to a terminated memorandum of understanding. 

The shipbuilder had inked the MoU with the two sellers, comprising an individual and a company, and had put down US$6 million refundable deposit. 

The MoU was terminated on Oct 28, 2016. However, until Dec 18 last year, the two sellers as well as the guarantors still had an outstanding US$3.85 million from the deposit sum, prompting an arbitration petition by Coastal. 

“Coastal wishes to announce that the tribunal, vide the final award, declared that the respondents are proven of committing a breach of the MOU and requested to pay Coastal the sum of US$4,349,759.10, which consist of the amount of the outstanding deposit US$3,846,837 and the interest in the amount of US$502,922.10,” the group said in a filing with the bourse today. 

“In the meantime, proceedings to implement and thereafter to enforce the arbitral award issued in favour of Coastal, remain ongoing,” it added. 

Shares of Coastal closed unchanged at 90 sen today, giving it a market capitalisation of RM478.44 million.