KHD Humboldt Wedag International AG (KHD), Cologne, has been informed of an award from a Portuguese arbitration court. In this award KHD and its subsidiary Humboldt Wedag Inc., Norcross, Georgia, USA, are jointly ordered to pay damages to a customer in South America. HW Inc.’s arbitration claim for disbursement of outstanding payments, reimbursement for a called bank guarantee, as well as additional compensation (for damages) was denied.Analysis of the wording and exact impact of the arbitration award has yet to be carried out in detail. Nonetheless, KHD has already assessed that the arbitration award will likely lead to expenses for the KHD Group of approximately €15 million in the 2015 financial year.
KHD Humboldt Wedag International AG’s CEO, Johan Cnossen, commented on the arbitration award: “This ruling does not reflect our own or our legal counsel’s expectations in any way. We believe that it is grossly incorrect and will exhaust all promising possibilities for success in proceeding against this judgement.”
Reflection of this arbitration award in KHD Group’s financial statements will not have an impact on the forecast result for the 2015 financial year as adequate provisions have already been set up.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/15022016/khd-informed-of-award-from-portuguese-arbitration-court-500/