KUALA LUMPUR (Nov 23): Property developer Zelan Bhd has lost an arbitration in a dispute with a dredging firm over charter hire fees, and has been ordered to pay the firm RM2.66 million.

In a stock exchange filing today, Zelan said its subsidiary, Zelan Construction Sdn Bhd, was the respondent to the claim made by Clamshell Dredging Sdn Bhd.

After the full trial of the matter at the Asian International Arbitration Centre (AIAC) in Kuala Lumpur, the tribunal ruled that Zelan Construction had terminated the contracts under dispute.

Apart from the RM2.66 million, Zelan Construction was ordered to pay Clamshell interest at the rate of 5% per annum on the sum of RM2.66 million from June 31, 2016 until full payment is made, as well as 90% of the costs associated with Clamshell's claim.

A counterclaim by Zelan Construction against Clamshell, meanwhile, was dismissed by the tribunal.

Zelan shares closed unchanged at 4.5 sen today. Its market capitalisation stands at RM38.02 million.