KUALA LUMPUR: FGV Holdings Bhd’s unit (FGVH), FGV Trading Sdn Bhd, has commenced arbitration proceedings under the auspices of the Palm Oil Refiners Association of Malaysia (Poram) against Macau-based Twin Wealth Macao Commercial Offshore Ltd relating to a US$14.62 million (RM60.83 million) sales contract.

According to a filing to Bursa Malaysia, FGVH said FGV Trading had entered into various contracts in November and December 2017 with Twin Wealth for the sale of 21,765 metric tonnes (MT) of refined, bleached and deodorised palm olein in bulk for US$14.62 million.

Pursuant to their free on board (FOB) obligations under the sale contracts, the cargo was shipped by FGV Trading in November and December 2017 respectively on board the ships/vessels, MT “Yue You 901” and MT “Global Uranus”.

“To date, the respondent has only made a part payment for approximately 2,000 MT of the cargo for the sum of US$1.37 million (RM5.7 million). The balance of the purchase price amounting to US$13.25 million (RM55.13 million) remains due and outstanding in favour of FGV Trading by Twin Wealth.”

The sale contracts provide for arbitration under Poram, said FGVH in the filing.

FGV Trading is claiming the total sum of US$13.25 million as the debt owed by Twin Wealth, and interest at the rate of 1.5% per month on this amount from the date the payment was due to the date of final and full realisation, costs and any other reliefs which the tribunal deems fit and reasonable.

The arbitration proceedings are not expected to have any operational impact on the company, FGVH said.