SunMoon Food Company has agreed to pay nTan Corporate Advisory rather than contest its claims for allegedly unpaid fees.
SunMoon said it will pay nTan $2.1 million plus GST in instalments as a full and final settlement relating to services provided by nTan.
In April last year, SunMoon was sued by nTan for 2.06 billion shares, or $2.06 million, for allegedly unpaid fees, relating to services provided by nTan in "identifying and securing investors" around 2007, when it was in financial distress.
In its statement yesterday, SunMoon said its board believed the settlement represented a positive outcome for the company, taking into account the legal fees that would be payable to its lawyers in continued litigation.
SunMoon said it had provided for about half of the settlement sum in previous years, and all payments will be made from its internal resources.
The settlement may have a significant impact on its financial performance for the current financial year.
Following a preliminary assessment, the directors of TA Corp warned that it expects to report a loss for the third quarter as well as the full year.
It noted that the negative trend in Singapore's private residential property market has been challenging for the group's property development business segment.
In addition to provision for impairment loss of $5 million on its development properties, as disclosed previously, the group expects further impairment loss provision on these development properties in the light of the continued weakening of the private property market.
Emas Offshore sold and leased vessels to help it record a 181 per cent surge in net profit to US$36.3 million (S$50.3 million) in its fourth quarter ended Aug 31.
Revenue fell 19 per cent to US$54.3 million, mainly due to weakness in both the shallow-water platform support vessels and anchor handling, towing and supply vessels segments.
But Emas boosted its other operating income with a gain from e sale of vessels and leaseback transactions totalling US$32.8 million.