Keppel Limited has filed an arbitration claim against Seatrium over liabilities related to Operation Car Wash.
Seatrium, on July 30, said it had reached a settlement with the Brazilian and Singapore authorities over offences related to the long-running case. Under the terms of the final leniency agreements, Seatrium said it is required to pay an aggregate final settlement payment of BRL728.93 million or $168.4 million.
Based on this figure, Keppel says its indemnity claim against Seatrium would amount to $68.4 million.
In its annual report for the FY2024 ended December, Keppel stated that Seatrium, per a previous agreement, would indemnify the former from or against all losses pertaining to the Operation Car Wash investigations. Keppel added, in its Aug 26 statement, that it had issued a notice of claim to Seatrium under this agreement in December 2024.
Seatrium said it is reviewing the claims and allegations and will “defend the arbitration claims vigorously”.
In its statement, the company noted that it reversed the $82.4 million provision it made for Keppel in FY2023, in FY2024. The move followed Keppel's notice of claim for the $82.4 million in December 2024, which Seatrium contested.
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"As there were no binding and legally enforceable agreements signed with the Brazilian authorities before the expiry of the Keppel indemnity on Feb 28, the company had reversed the legal provision of $82.4 million," it adds.
Shares in Keppel closed 5 cents lower or 0.6% down at $8.35 while shares in Seatrium closed 1 cent lower or 0.43% down at $2.33 on Aug 26.
