Renaissance United subsidiary hit with court order to pay 40.4m yuan to contractor

MAINBOARD-LISTED Renaissance United's subsidiary on Nov 26 received a court order to pay a monetary judgment of 40.4 million yuan (S$8.2 million) to its contractor.

The amount represents trade payables claimed by Wuhan Yuyun Municipal Engineering from Renaissance subsidiary, Hubei Zonglianhuan Energy Investment Management (HZLH).

HZLH is disputing the amount owed and the monetary judgment, said Renaissance United in a bourse filing on Monday. The subsidiary's lawyers have been instructed to appeal the decision with the appellate court and apply for a stay of judgement, pending the appeal.

HLZH's management believes that an amicable resolution can be reached with the contractor, as has been the case on previous occasions when the company had been in dispute with the contractor over trade payables and services rendered by the latter.

Wuhan Yuyun Municipal Engineering continues to supply contracting services to HZLH.

Renaissance United, which was formerly known as IPCO International, is a developer, turnkey contractor and investor in oil and gas, power, transportation, water and environment, and industrial infrastructure projects.

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The group said the board is assessing alternative avenues to re-finance HZLH's trade payables, and is considering a fund raising.

Shares in the company closed flat at 0.2 Singapore cent on Monday.