Post by zuolun on Nov 13, 2015 12:16:50 GMT 7
Petra falls into Q3 loss on exceptional charges following settled dispute ~ 12 Nov 2015
QT's Q3 balance sheet, bottom line in hole after providing for loss of lawsuit ~ 9 Nov 2015
Solitaire Arbitration ~ 31 Mar 2006
SembCorp to pay Allseas 350m euros in Solitaire case
Exceptional charge of about $65m to be taken in first quarter of 2006
By CONRAD RAJ
April 1, 2006
AFTER more than ten long years, SembCorp Industries has finally resolved the Solitaire issue by agreeing to pay a staggering sum of 350 million euros (S$685 million) to the pipe-laying vessel's owner, Allseas.
Record size: The $230 million job to convert Solitaire into the world's largest pipe-laying vessel was Sembawang's biggest ever then
In a statement issued late last night, SembCorp said the agreement between its subsidiary, Sembawang Corporation, and Allseas was a 'full and final amicable settlement' of the dispute between the two companies to the conversion of the pipe-laying vessel Solitaire.
SembCorp added: 'Under this final settlement agreement, Sembawang will pay Allseas a sum of 350 million euros, within 14 days from the date of agreement. The settlement agreement provides for a full and final settlement and release by each party of the other of all claims, counterclaims and liabilities of any nature relating to the Solitaire conversion.'
Arising from the settlement and taking into account provisions made in earlier years for the potential fallout from the case, SembCorp said an exceptional charge of about $65 million will be taken in the first quarter of 2006. The settlement sum will be funded through internal sources.
Asked why SembCorp had decided to settle the case after so long, the company said in an e-mail reply: 'Solitaire was a complex litigation case that involved a lengthy arbitration process. This process as you would appreciate was not one that was under our control. Our board together with management have done their best to manage the arbitration process bearing in mind our company's interests. We are glad to be able to negotiate successfully for a settlement and close this chapter.'
The case, which has been under arbitration in London since 1995, had been an albatross around the neck of SembCorp since Allseas sued Sembawang that year for delay in completing the conversion work on the vessel. The $230 million job to convert the bulk carrier Solitaire into the world's largest pipe-laying vessel was Sembawang's biggest ever then.
Countersuits from Sembawang followed, with the company contending that it was not to be blamed for the delay. Instead, it said the delay was partly caused by a late submission of plans by Allseas.
The counter-claims were settled early last year, under which Allseas withdrew one of its claims.
In November 2004, the English High Court dismissed SembCorp's appeal of a ruling by the UK-based Arbitration Tribunal that said Allseas was not in breach of its contractual obligations when it chose another shipyard to complete the work.
Following the loss of the appeal, SembCorp made a provision of $200 million to add to the $150 million it provided for in 1998. There was an additional provision of $215 million later, taking the total provisions to $565 million.
The company had not taken any insurance for the job, a SembCorp source said. 'Some jobs could not be insured then, but these days we take greater care in covering ourselves against such risks, especially when job variations are done.'
Allseas was said to have earlier paid some $140 million to Sembawang for the part-completion of the work on Solitaire.
Solitaire, which early last year underwent a 20 million-euro repair job at the Netherlands yards of SembCorp's rival Keppel Corporation, is now believed to back at work in the North Sea.
The work at Keppel Verolme included regular repair and maintenance; painting; installation of additional buoyancy tanks and local reinforcements to the vessel's structure; replacement of stinger sections for newly delivered sections; and structural and mechanical adjustments to the vessel.
SembCorp shares yesterday ended four cents higher at $3.50 apiece.
QT's Q3 balance sheet, bottom line in hole after providing for loss of lawsuit ~ 9 Nov 2015
Solitaire Arbitration ~ 31 Mar 2006
SembCorp to pay Allseas 350m euros in Solitaire case
Exceptional charge of about $65m to be taken in first quarter of 2006
By CONRAD RAJ
April 1, 2006
AFTER more than ten long years, SembCorp Industries has finally resolved the Solitaire issue by agreeing to pay a staggering sum of 350 million euros (S$685 million) to the pipe-laying vessel's owner, Allseas.
Record size: The $230 million job to convert Solitaire into the world's largest pipe-laying vessel was Sembawang's biggest ever then
In a statement issued late last night, SembCorp said the agreement between its subsidiary, Sembawang Corporation, and Allseas was a 'full and final amicable settlement' of the dispute between the two companies to the conversion of the pipe-laying vessel Solitaire.
SembCorp added: 'Under this final settlement agreement, Sembawang will pay Allseas a sum of 350 million euros, within 14 days from the date of agreement. The settlement agreement provides for a full and final settlement and release by each party of the other of all claims, counterclaims and liabilities of any nature relating to the Solitaire conversion.'
Arising from the settlement and taking into account provisions made in earlier years for the potential fallout from the case, SembCorp said an exceptional charge of about $65 million will be taken in the first quarter of 2006. The settlement sum will be funded through internal sources.
Asked why SembCorp had decided to settle the case after so long, the company said in an e-mail reply: 'Solitaire was a complex litigation case that involved a lengthy arbitration process. This process as you would appreciate was not one that was under our control. Our board together with management have done their best to manage the arbitration process bearing in mind our company's interests. We are glad to be able to negotiate successfully for a settlement and close this chapter.'
The case, which has been under arbitration in London since 1995, had been an albatross around the neck of SembCorp since Allseas sued Sembawang that year for delay in completing the conversion work on the vessel. The $230 million job to convert the bulk carrier Solitaire into the world's largest pipe-laying vessel was Sembawang's biggest ever then.
Countersuits from Sembawang followed, with the company contending that it was not to be blamed for the delay. Instead, it said the delay was partly caused by a late submission of plans by Allseas.
The counter-claims were settled early last year, under which Allseas withdrew one of its claims.
In November 2004, the English High Court dismissed SembCorp's appeal of a ruling by the UK-based Arbitration Tribunal that said Allseas was not in breach of its contractual obligations when it chose another shipyard to complete the work.
Following the loss of the appeal, SembCorp made a provision of $200 million to add to the $150 million it provided for in 1998. There was an additional provision of $215 million later, taking the total provisions to $565 million.
The company had not taken any insurance for the job, a SembCorp source said. 'Some jobs could not be insured then, but these days we take greater care in covering ourselves against such risks, especially when job variations are done.'
Allseas was said to have earlier paid some $140 million to Sembawang for the part-completion of the work on Solitaire.
Solitaire, which early last year underwent a 20 million-euro repair job at the Netherlands yards of SembCorp's rival Keppel Corporation, is now believed to back at work in the North Sea.
The work at Keppel Verolme included regular repair and maintenance; painting; installation of additional buoyancy tanks and local reinforcements to the vessel's structure; replacement of stinger sections for newly delivered sections; and structural and mechanical adjustments to the vessel.
SembCorp shares yesterday ended four cents higher at $3.50 apiece.