FGV claiming RM45.2 million outstanding payment from Safitex

PETALING JAYA: Felda Global Ventures Holdings Bhd's (FGV) subsidiary Delima Oil Products Sdn Bhd (DOP) is seeking US$11.7 million (RM45.2 million) from Safitex General Trading LLC in Dubai.
DOP is also demanding 12% interest per annum from the date of the filing of the Safitex suit until payment is made in full.
In a filing with Bursa Malaysia, FGV said DOP has commenced legal proceedings against Safitex by filing a statement of claim in the Dubai Court of First Instance upon the receipt of a preliminary registration number for the purposes of reviewing the claim against Safitex.
FGV noted that the litigation against Safitex may have a material financial impact on the group as a favourable outcome may reverse the earlier impairment provisions made, but an unfavourable outcome will result in further losses to the group.
Safitex operates in the United Arab Emirates and had entered into contracts with DOP for the purchase of refined crude palm oil and margarine.
Although DOP has provided Safitex with all products required in accordance with its contractual obligations, Safitex has failed to complete its contractual obligations and owes US$11.7 million to date.
FGV's shares rose 2.41% or 4 sen to close at RM1.70 with a total of 5.35 million shares traded.