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aws全区号(www.2km.me)_SCIB inks settlement to terminate contracts in Qatar, Oman

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KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) and its subsidiary SCIB International (Labuan) Ltd have entered into settlement agreements with clients and subcontractors for the mutual termination of contracts to mitigate risks arising from long-overdue debts and Covid-19 uncertainties.SCIB said the decision was arrived at by the stakeholders after considering that the progress of the projects, undertaken in Qatar and Oman, was greatly affected by manpower issues caused by the Covid-19 pandemic.There were also prolonged pandemic, travelling and operational restrictions posing challenges to the project management as well as slow payment and long outstanding debts owed by the clients.According to the settlement agreement, SCIB will receive a combined total of US$148.71mil from the clients as full and final settlement of the amount owing.Concomitantly, SCIB will settle its debts owing to the subcontractors via a combined payment of US$135.15mil.Following these payments, there will be no imposition of any further claims or damages upon SCIB after the cut-off date."The company is enforcing its rights under the contracts and taking the necessary measures to protect SCIB’s interests in mitigating the risks arising from the long-overdue debts owing by the clients and the uncertainties surrounding the Covid-19 Pandemic."Additionally, this decision was made as a result of repositioning of business strategy in overseas projects," said SCIB in a filing with Bursa Malaysia.It added that the final claims in the settlement agreements are consistent with the provisions taken up in the accounts, hence there will not be any material effect on the gearing, earnings per share and net assets of SCIB for the financial year ending June 30, 2020.
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