Sembcorp Marine receives US$40mln settlement from Societe Generale

Both parties settled dispute amicably after Sembcorp sued SG to reclaim US$199mln unauthorized forex losses.

Sembcorp Marine wishes to announce that its subsidiary Jurong Shipyard, has reached an agreement, strictly on a commercial basis with Societe Generale (SG) for a full and final amicable settlement of the disputed foreign exchange transactions.

Arising from this settlement, SG will make a payment of US$40 million to Jurong Shipyard. The settlement is on the basis that there is no admission of liability by either party, as meioned in a Sembcorp Marine report.

The above settlement will result in a write-back of US$40 million and it will be taken up in the income statement of Sembcorp Marine in the third quarter of 2010.

The settlement with SG is the last and final settlement with all the banks involved in the disputed foreign exchange transactions as amicable settlements have now been agreed with all the banks involved.

Sembcorp last year filed a lawsuit to recover US$198.9 million from SG, saying the trades that led to the foreign exchange losses had not been authorised, according to a Reuters report.