Koh Brothers Eco Engineering faces up to S$57.6 million in potential liabilities from legal disputes
It reveals a binding S$20.5 million joint venture risk alongside fresh consortium, subcontractor disputes
Koh Brothers Eco Engineering disclosed potential liabilities of nearly S$57.6 million from three legal disputes in a filing on August 18. The company faces a S$20.5 million joint venture risk, a S$23.3 million consortium arbitration claim, and a subcontractor suit up to S$13.78 million. The most serious matter is the joint venture counterclaim, dismissed by the Singapore High Court on August 6, leading to final payment orders on August 7.
Koh Brothers estimates a maximum exposure of S$20.5 million in this case but still has over S$40 million in undistributed JV funds. Additionally, the company is involved in a consortium dispute over alleged unpaid capital injections and a lawsuit from a former subcontractor for wrongful termination and conspiracy. Despite these legal battles, Koh Brothers stated the disputes do not jeopardize its ability to continue as a going concern, citing a net asset position of S$124.7 million as of June 30.
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