The International Chamber of Commerce International Court of Arbitration has ruled that fluorspar producer Sallies must pay R11.5m plus interest to US-based Honeywell to resolve their dispute.
The amount originally claimed by Honeywell was R65m plus interest and costs. Sallies filed an alternative claim for R42m plus interest and costs. The case relates to a terminated supply agreement between the two companies.
The ruling was that Sallies pay Honeywell $1.24m plus interest at 5% per annum since January 2006. This works out to an additional $200,000. Each party would pay their own legal costs.
"Management is disappointed the ruling went against them, but it is also quite pleased it wasn't for the full amount," a company spokesperson told Miningmx. He said Sallies will not approach the market to raise funds.
Sallies' shares bounced seven percent to 30 cents each on the JSE now that the uncertainty has been removed.
Sallies has made no provision for the claim in its interim results for the six months to end-December 2008.
"We wouldn't be able to absorb a smack like that," Sallies CEO Tom Dale said during a recent results presentation, referring to the full R65m, which increased to R86m if it had to pay Honeywell's legal fees too.
In March, Sallies has cash of R12m on its books. It has money due to it of R40m and inventories of R43m.
“We are studying the detailed 59-page Award Document and formulating our response," Dale said in a statement.
"The company is exploring various settlement options and remains in a sound liquidity position.”
Source: Mining Mx
No comments:
Post a Comment