News

1.         COMMENCEMENT OF ARBITRATION

QLR wishes to announce that on 3 August 2023, its subsidiary, QLO, has commenced arbitration proceedings in the Singapore International Arbitration Centre against the Respondents, through the filing of a Notice of Arbitration. 

2.         BRIEF BACKGROUND OF THE PARTIES TO THE ARBITRATION PROCEEDINGS

QL Mutiara (S) Pte Ltd (“QLM”) is the joint venture company between QLO, a wholly owned subsidiary of QLR, and HT pursuant to the Master Joint Venture Agreement dated 16 August 2006 (“MJVA”) executed between QLO, HT and PCP. PT. Pipit Mutiara Indah (“PMI”) is the operating plantation company (“Business”) which is 95% held by QLM, whereas the remaining 5% shareholdings in PMI is held by PCP. QLO has an effective interest of 74.5% in PMI whereas HT and PCP collectively have an effective interest of 25.5% in PMI. PCP and HT are affiliated companies owned by the family of the Kristianto Kandi Saputro (deceased) (“Kris”), and Juliet Kristianto Liu (“Juliet”) is the spouse of Kris.

3.         PARTICULARS OF ARBITRATION

The grounds of complaints by the Claimant are pertaining to various breaches of Respondents’ obligations under, and occurrence of deadlock pursuant to, the MJVA.

Amongst others, in breach of the arbitration agreement contained in the MJVA, PCP commenced legal proceedings in Indonesia against PMI, Mr Chia Seong Fatt (“Chia”) and QLM (hereinafter collectively referred to as the “Plaintiffs”) in the Tarakan District Court under Case Number 31/PDT.G/2021/PN.Tar (the "Indonesian Proceedings", the particulars of which are as per the Company’s announcement on 16 August 2021) against the Plaintiffs. The claims in the Indonesian Proceedings were disputes and differences which arise out of or in connection with the MJVA. Subsequently, the Plaintiffs successfully obtained an interim injunction order dated 6 December 2021 (the “Injunction Order”) against PCP to restrain PCP from, amongst other things, proceeding with the Indonesian Proceedings (refer to the Company’s announcements on 6 December 2021 and 9 December 2021). However, PCP had, in breach of the Injunction Order and the MJVA, deliberately proceeded and continued with the Indonesian Proceedings until on or around 24 March 2022 (refer to the Company’s announcement on 11 March 2022). The Claimant has commenced the Arbitration in order to resolve various disputes between the parties to the MJVA under the arbitration proceedings as stipulated in the MJVA.

The Claimant is seeking, amongst others, the following reliefs against the Respondents:

a.       specific performance order(s) to compel the Respondents to comply with their obligations and duties under the MJVA and/or the relevant law;

b.       damages to be assessed against the Respondents in relation to Respondents’ breaches;

c.       interest;

d.       costs; and

e.       such further and/or other relief as the Tribunal deems fit.

4.         FINANCIAL IMPACT ON THE COMPANY

Apart from the potential damages to be assessed and costs which may be awarded against the Respondents and the corresponding legal costs on the part of QLO, the Arbitration is not expected to have any other material financial impact on the Company for the financial year ending 31 March 2024.

The Arbitration is not expected to have any business and operational impacts on the Company.

5.         STEPS TAKEN AND/OR PROPOSED TO BE TAKEN IN RESPECT OF THE ARBITRATION

The Company will make further announcement as and when there are material developments on the above matter.

This announcement is dated 3 August 2023.