Friday 29 Mar 2024
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KUALA LUMPUR (March 31): Malaysia Airports Holdings Bhd (MAHB) and HSS Integrated Sdn Bhd (HSSI), a unit of HSS Engineers Bhd, have agreed to an out-of-court settlement of RM1.5 million, relating to a dispute over a contract for the proposed development of a new low-cost carrier terminal and associated services at Kuala Lumpur International Airport.

"The settlement was reached via the negotiation and/or mediation process between the parties as the parties have mutually agreed to withhold the arbitration proceeding. In light of this settlement, MAHB will withdraw the notice of arbitration against HSSI.

"After weighing all circumstances, the company, upon the advice from its solicitors, are of the view that the amicable settlement is [in] the best interest of the company," said MAHB in a bourse filing today.

To recap, MAHB had issued a notice of arbitration to HSSI on Dec 22, 2016, relating to a memorandum of agreement signed between the parties dated April 13, 2010. MAHB had claimed an estimated sum of RM64.62 million, after previously failing to resolve the dispute amicably last year.

MAHB fell 11 sen or 1.56% to RM6.95, giving a market capitalisation of RM11.65 billion.

 

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