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Personal Guarantees and Other Undertakings Provided by Associates of Yaw Chee Siew in Our Favour
Associates of Yaw Chee Siew have provided personal guarantees as security for loans and other credit
facilities granted to us by banks and financial institutions. Details of these personal guarantees are as follows:
Financial
Institution Guarantor
HSBC Bank . . . . Yaw Chee Ming and
Yaw Teck Seng (1)
HSBC Bank . . . . Yaw Chee Ming and
Yaw Teck Seng (1)
Sumikin Bussan. . Yaw Teck Seng (2)
Amount of
Facilities
Guaranteed
Interest Rate
Per Annum
S$4,821,605 1.0% above
Singapore
Dollar
prime
lending rate
S$766,042 Singapore
Dollar
prime
lending rate
Yen 950
million
Largest
Amount
Outstanding
During
Period
Under
Review
4.5% Yen 950
million
Amount
Outstanding
as at
31 May 2008
Amount
Outstanding
as at the
Latest
Practicable
Date
(S$’000) (S$’000)
S$4,821,605 — —
S$766,042 — —
— —
Notes:
(1) Yaw Teck Seng, Taikichi Ito and Yaw Chee Ming, all former Directors of our Company, were jointly and
severally liable under this guarantee.
(2) Yaw Teck Seng and Taikichi Ito, our former Directors, were jointly and severally liable under this
agreement.
As at the Latest Practicable Date, the above facilities and the above guarantees have been fully
discharged.
Our Directors believe that the above guarantees were not given on an arm’s length basis as the guarantors
received no benefit from the transactions. We do not intend to rely on guarantees of this nature from the
Associates of Yaw Chee Siew in the future.
Transaction with Pantai Bayu
In June 2004, our Company entered into an agreement with Pantai Bayu to act on Pantai Bayu’s behalf as
a main contractor to perform certain dredging and reclamation work in Malaysia. We subsequently entered
into a separate sub-contracting agreement at a contract price of RM31.5 million with a sub-contractor to
complete the work. The work was completed in June 2005, and payment was made directly by Pantai Bayu to
the sub-contractor.
Yaw Chee Siew provided us with an indemnity against all liabilities and claims that may arise from or in
connection with the agreement with the sub-contractor. We did not receive any benefit from Pantai Bayu and
acted as an intermediary to this arrangement.
Our Directors believe that the above transaction was not carried out on an arm’s length basis as our
Company did not receive any benefit from this transaction. We do not intend to enter into any future
transactions of this nature with Pantai Bayu.
On 20 November 2007, our Company received a notice of arbitration from the sub-contractor alleging
that there was a separate express or collateral agreement to pay them an additional RM4.4 million in relation
to the work done by it. On 10 September 2008, we entered into a settlement agreement with the sub-contractor
for full and final settlement of all claims made by them against us in the arbitration proceedings. See “Our
Business — Litigation and Arbitration Proceedings” for more information on the claim. Accordingly, Yaw Chee
Siew has, in connection with the indemnity provided by him, reimbursed us for all costs and expenses we
incurred pursuant to the settlement agreement and all legal expenses arising out of the arbitration proceedings.
Sale of Vessels to Tinjar Transport
During the Period under Review, our subsidiary PT Batamec was awarded two contracts by Tinjar
Transport to build seven vessels in total with an aggregate contract value of S$7.2 million. Six vessels were
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