KHD informed of arbitration award

KHD informed of arbitration award
17 February 2016

KHD Humboldt Wedag International said it has been informed of an award from a Portuguese arbitration court, whereby KHD and its subsidiary Humboldt Wedag Inc (USA) are jointly ordered to pay damages to a customer in South America.

Humboldt Wedag Inc’s arbitration claim for disbursement of outstanding payments, reimbursement for a called bank guarantee, as well as additional compensation (for damages) was denied. The wording and expect impact of the arbitration award are still to be analysed in detail, KHD Humboldt Wedag said in a statement. Nevertheless, the company has already assessed that the arbitration award is expected to lead to expenses for the KHD Group of approximately EUR15m in the 2015 financial year.

KHD Humboldt Wedag International’s CEO, Johan Cnossen, commented: “This ruling does not reflect our own 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.”

The company added that the arbitration award will not impact its forecasts for 2015 financial results ,
 “as adequate provisions have already been set up.”

Published under Cement News