Logo of Phnom Penh Post newspaper Phnom Penh Post - Parkson Cambodia ordered to pay $144M



Parkson Cambodia ordered to pay $144M

Parkson Cambodia ordered to pay $144M

Malaysian retail group Parkson Holdings Bhd’s Cambodian unit has been ordered to pay $144.50 million in damages to its lessor Hassan (Cambodia) Development Co Ltd (HCDC), Parkson Holdings said in a statement filed on behalf of Parkson Retail Asia Ltd (PRA) to Bursa Malaysia on Monday.

The unit, Parkson (Cambodia) Co Ltd (PCCO), is wholly owned by PRA, which is a 67.96 per cent owned subsidiary of Parkson Holdings and is listed on the Singapore exchange.

PCCO must additionally forfeit its security deposit and advance payments amounting to $4.49 million, according to the Phnom Penh Municipal Court’s April 22 verdict on the lawsuit that HCDC initiated against the unit.

The statement said: “PCCO is currently seeking advice from its Cambodian lawyers whether to petition to set aside the judgement, to appeal to the Cambodian Appellate Court or if other forms of recourse are available.

“The board wishes to highlight that the judgement is only applicable against PCCO and does not extend to the company, the company’s other subsidiaries nor its holding companies,” it said.

In November 2018 and October last year, PRA announced that it had issued a notice of arbitration to HCDC under the Singapore International Arbitration Centre (SIAC) over the lease.

PRA announced in its unaudited financial statements – released on August 27, 2019 for the fourth quarter and 12 months ended June 30, 2019 – that the dispute was pending arbitration under the SIAC.

On December 12, 2018, HCDC filed a petition against PCCO at the Phnom Penh Municipal Court seeking damages amounting to $12.44 million.

PCCO tried to challenge the jurisdiction of the Phnom Penh Municipal Court in hearing the case, but failed.

The Monday statement said: “Prior to the judgement, Parkson Cambodia had filed an appeal motion to the Cambodian Appellate Court to transfer the jurisdiction of the Phnom Penh [Municipal] Court to hear Case No 2577 to SIAC Arbitration jurisdiction. The appeal motion is currently pending in the Cambodian Appellate Court.

“The PRA Group’s maximum potential exposure resulting from the judgement will therefore be limited to its capital contribution in Parkson Cambodia which had been fully provided for in the audited financial statements of PRA for the financial year ended June 30, 2017.

“PRA Group had, in its audited financial statements for the financial years ended June 30, 2016, 2017 and 2018, recognised the impairment losses in connection with, inter alia, the full amounts of prepaid rental, rental deposit and property, plant and equipment in respect of the Cambodia Store.

“Accordingly, the judgement, even if not successfully reversed or appealed against by Parkson Cambodia, is not expected to have a material impact on the earnings per share and the net tangible assets per share of the PRA Group for the financial year ending June 30,2020,” PRA said.

The Post could not reach HCDC for comment on Tuesday.

MOST VIEWED

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a