Mainboard-listed logistics player, Sinwa, says the Court of Appeal has allowed an appeal by its subsidiary, Sinwa SS (HK) Co, and granted leave for the latter to start a derivative action in the name of Nordic International Limited (NIL) against Morten Innhaug (Morten) for breaches of fiduciary duties.

NIL is a joint venture between Sinwa and Morten. The breaches of fiduciary duties arose from a purported assignment of a 2D seismic survey vessel to an entity controlled by Morten.

In addition, the Court of Appeal has also ordered Morten to pay a sum of $10,000 to Sinwa to compensate for the legal costs incurred since the originating summons were served on 27 August 2009.

“We are consulting with our lawyers and will take into consideration all possible options to act in the best interest of our shareholders,” says Mike Sim, Executive Chairman and CEO of Sinwa.

The result of the litigation is not expected to have any significant impact on the financial performance of the group for the financial year ending Dec 31, 2010. The group will continue to provide updates of the case in subsequent announcements via SGX and its corporate website.