Koh Brothers Eco Engineering faces up to S$57.6 million in potential liabilities from legal disputes
Koh Brothers Eco Engineering has disclosed three major legal disputes involving joint ventures, consortiums, and subcontractors. These legal challenges expose the company to potential liabilities totaling S$57.6 million.
Why it matters
The significant financial exposure poses a risk to the company's fiscal health and investor confidence as it transitions to the Singapore Exchange mainboard.
It reveals a binding S$20.5 million joint venture risk alongside fresh consortium, subcontractor disputes
[SINGAPORE] Catalist-listed Koh Brothers Eco Engineering on Tuesday (Aug 18) disclosed three major legal disputes which are exposing it to nearly S$57.6 million in potential liabilities.
This came just hours before an extraordinary general meeting at which shareholders voted in favour of moving the company to the Singapore Exchange mainboard .
The engineering and construction company flagged a maximum exposure of S$20.5 million in a joint-venture (JV) dispute, alongside a S$23.3 million consortium arbitration and a subcontractor claim of up to S$13.78 million.
The most pressing development involves the JV counterclaim.
The company said the Singapore High Court on Aug 6 dismissed applications by its subsidiary, Koh Brothers Building & Civil Engineering Contractor (KBCE), to set aside partial arbitration awards.
The JV partner then applied to the tribunal for final payment orders on Aug 7.
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