Mudajaya receives insurance claim settlement of RM32.28m

PETALING JAYA: Mudajaya Group Bhd’s wholly owned subsidiary Mudajaya Corp Bhd has received RM32.28 million as full and final settlement of the claim from the insurance companies.
In a filing with Bursa Malaysia yesterday, the group said it will recognise RM32.28 million in the current financial year as partial reversal of the impairment that was provided in the previous year.
The insurance claim settlement is in relation to the Tanjung Bin 4 project.
To recap, Mudajaya Corp had on April 10, 2017 reached a settlement with GE Power Services (Malaysia) Sdn Bhd and Alstom Power Systems (collectively known as GE) in respect of outstanding claims relating to the construction of a 1 x 1000MW net coal fired power plant in Tanjung Bin.
Under the settlement, GE will pay Mudajaya Corp RM60 million as full and final settlement of the latter’s claims against GE. Each party was also entitled to any insurance proceeds recovered in relation to their respective insurance claims.
As a result of the settlement agreement, the group recorded a non-cash impairment of assets relating to the project of RM111.9 million in the financial year ended Dec 31, 2016.
The group’s share price fell 1.85% or 2 sen to close at RM1.06 with a total of 72,800 shares traded.