Mudajaya secures RM32mil settlement related to Tg Bin power plant


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PETALING JAYA: Mudajaya Group Bhd has received a RM32.3mil settlement from insurance companies for outstanding claims relating to the construction of a 1,000MW net coal-fired power plant at Tanjung Bin, Johor.

The project was completed and handed over to Mudajaya in March 2016.

“As a result of the insurance claim settlement, the group will recognise RM32.28mil in the current financial year as partial reversal of the impairment that was provided in the previous financial year,” Mudajaya said in a filing with Bursa Malaysia on Thursday.

In April, Mudajaya received a RM60mil settlement from GE Power Services (M) Sdn Bhd and Alstom Power Systems for the said power plant project.

Mudajaya said the settlement could be deployed for new and existing projects, and it would still retain its rights to any recovery from insurance proceeds that were part of its total claims, via GE as the consortium leader for the project.

As a result of the settlement agreement, Mudajaya will record a non-cash impairment of assets relating to the project amounting to RM111.9mil in the financial year ended Dec 31, 2016.

 

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