Koh Brothers Eco unit faces up to $57.6m in potential legal exposure

The JV dispute leaves the subsidiary facing estimated maximum exposure of $20.5m.

Koh Brothers Eco Engineering’s wholly-owned subsidiary faces up to $57.6m in potential claims and exposure across three legal disputes, the company disclosed in a bourse filing.

The unit, Koh Brothers Building & Civil Engineering Contractor (KBCE), is involved in two arbitration cases and a separate claim brought by a former subcontractor.

One arbitration involves a joint venture (JV) project, in which the contractor’s estimated maximum exposure is about $20.5m, excluding interest and legal costs.

The dispute arose after the subsidiary and its JV partner brought claims against each other over work done, underpayments, alleged breaches and project delays.

KBCE had claimed about $37.8m, whilst its partner counterclaimed for around $37.1m. An arbitration panel later valued the unit’s claims at about $2.1m and the counterclaims at about $20.5m.

On 6 August, the Singapore High Court dismissed the contractor’s applications to set aside two arbitration awards, leaving them binding on the parties. The JV partner applied the following day for final payment orders.

Koh Brothers Eco said the dispute remains unresolved and that it is reviewing its legal position and the potential impact on its financial position for the year ending 31 December 2026.

The company also said the JV account holds more than $40m in funds that have yet to be distributed.

Separately, a former subcontractor is seeking between $9.18m and $13.78m in damages from the construction unit and Koh Keng Siang over the termination of a subcontract. Both have denied the claims.

The subsidiary has also brought a counterclaim, which it currently estimates to exceed the amount sought by the former subcontractor.

In a third dispute, the contractor’s consortium partners are seeking about $23.3m, or alternatively $20.7m, over allegations that it failed to contribute its share of requested capital injections for another construction project.

The unit disputes both the liability and the amount claimed. No award has been made, whilst a hearing originally scheduled for 26 August has been postponed to a date to be confirmed by the tribunal.

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