The Agreed Sum represents the full and final settlement of certain claims between the Charterers and AKPL that relate to or arose from events or circumstances which commenced or occurred prior to the Effective Date.
4. FINANCIAL EFFECTS OF AA2
Following agreement on the basis to calculate the Compensation, the signing of AA2 is expected to mitigate the Company’s long term financial exposure under the Bareboat Charter.
The estimated negative financial impact on profit or loss of the Bumi Armada Group for 2018 is approximately USD25 million (approximately RM100 million).
An impairment assessment has been carried out by the Company based on the terms in AA2. As a result, the Company recognised an impairment expense of USD119 million (approximately RM477 million) in the financial statements.
This announcement is dated 29 August 2018.
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