KUALA LUMPUR (Nov 8): Pursuant to its arbitration proceeding against Twin Wealth Macao Commercial Offshore Ltd for outstanding payments due for various palm olein contracts, FGV Holdings Holdings’ unit has commenced additional arbitration cases against the owner and charterer of the vessels delivering the oil.

In a filing with Bursa Malaysia today, FGV said FGV Trading Sdn Bhd has commenced arbitration proceedings against GMS Line Co Ltd, namely the charterer of the MT Global Uranus vessel, as well as against Zhu Cheng Shipping Co Ltd, the owner of MT Yue You 901.

In November and December last year, FGV Trading and Twin Wealth had entered into various contracts for the sale of 21,765 tonnes of palm olein for US$14.62 million (RM60.86 million), of which FGV Trading had then shipped the cargo in the same months, on board the vessels MT Yue You 901 and MT Global Uranus.

However, to date, Twin Wealth had only paid for some 2,000 tonnes of palm olein, the sum of about US$1.37 million (RM5.68 million). On Oct 25, FGV said the balance of US$13.25 million (RM55.16 million) remains due and outstanding in favour of FGV Trading.

Today, FGV said it is claiming for the misdelivery of the cargo carrying palm oil, of which it alleges both parties to have discharged and delivered without the production of the original bills of lading which to date, remains in FGV’s possession.

As such, FGV said it is claiming from GMS Line US$7.82 million reflecting the value of 11,764 tonnes of cargo, with interest of 1.5% per month on the said sum from the date the payment was due to the date of final and full realisation thereof and costs.

While from Zhu Cheng, it is claiming for US$5.43 million for the value of 8,000 tonnes of cargo which remains unpaid, with interest of 1.5% per month on the said sum.

FGV said the arbitration proceedings are not expected to have any operational impact on the group and its unit, but may have a financial impact depending on whether the debt recovery is successful.

FGV shares closed down one sen or 0.71% to RM1.40 today, with 4.36 million shares done, for a market value of RM5.11 billion.