Engineering group Monadelphous
(ASX:MND) announced that a binding agreement entered into with Chinese waste management company Xiaoqing Environmental Protection Technology has been terminated.
Under the agreement, Xiaoqing intended to purchase $11.5 million of a convertible loan from recycling company AnaeCo.
Monadelphous said in an ASX statement that it gave the waste management company multiple extensions to fulfil the transaction but obligations under the agreement were not completed.
The engineering company intends to pursue Xiaoqing for damages resulting from non-performance of the agreement.
Monadelphous said while the loan provided to AneaCo has been fully provided for in its financial accounts, it will not have consequential impact on the overall earnings of the engineering company.
Shares in Monadelphous
(ASX:MND) closed 2.02 per cent higher to $17.70.
