CSE Global settles dispute with subsidiary’s customer for US$8m

The settlement is expected to adversely impact its FY2024 earnings.

CSE Global has settled arbitration proceedings with a customer of its unit, Hankin. The customer had initiated arbitration proceedings in the United States on 3 September, citing losses resulting from delays in Hankin’s performance of its contracted works.

Hankin was hired by the customer to provide engineering, procurement, and installation services for a United States construction project, where the customer was the general contractor.

Hankin said that the delays were predominantly caused by supply chain disruptions due to the COVID-19 pandemic and the customer’s instructions to vary the approved existing design plan.

On 8 September, the parties concluded a US$8m settlement, subject to the execution of a written Settlement Agreement and Release by the parties.

The settlement is expected to have a material adverse impact on the company for FY2024.

The company advises shareholders and potential investors to exercise caution when dealing and trading in the company's shares and to consult their advisers if they are in doubt of the appropriate actions to take.