FGV starts arbitration proceedings, claims US$13.25m from Twin Wealth Macao

PETALING JAYA: FGV Holdings Bhd has commenced arbitration proceedings under the auspices of the Palm Oil Refiners Association of Malaysia against Twin Wealth Macao Commercial Offshore Ltd over the US$13.25 million (RM55.15 million) debt owed to it.

FGV’s subsidiary FGV Trading Sdn Bhd entered into various contracts in November and December 2017 with Twin Wealth for the sale of 21,765 metric tons of refined, bleached and deodorised palm olein in bulk for US$14.62 million.

Pursuant to the free-on-board obligations under the sale contracts, the cargo was shipped by the FGV Trading in November and December 2017 respectively on board the ships/vessels MT Yue You 901 and MT Global Uranus.

To date, FGV Trading has only made a part payment for about 2,000 metric tons of the cargo in the sum of US$1.37 million. The balance of US$13.25 million remains due and outsstanding.

FGV said the arbitration proceedings are not expected to have any operational impact on the group, but may have financial impact on the group if it fails to recover the same amount.

“The company will make the necessary announcements on further developments of the arbitration proceedings as and when there is a material update,” it added in its filing to the stock exchange.

On Bursa Malaysia yesterday, FGV closed 0.7% lower at RM1.39 on volume of 5.75 million shares.