Judgement Pronounced in Dispute
Wednesday, January 17, 2007
After a dispute lasting several years, a court in London has ordered Concordia Maritime to pay $3.6m to a subsidiary of the Halliburton group in the US. Concordia Maritime will also have to pay some interest compensation to the opposite party. The original claim of $11.5m was for compensation for repair and steel replacement work carried out by the buyer on the VLCC Stena Continent sold by a subsidiary of Concordia Maritime in 2000.
A provision of $2.3mwas made in the annual accounts for 2005. In view of the judgement now pronounced, Concordia Maritime has lowered its forecast for 2006 from SEK 75 million to SEK 55 million.
There is a possibility that either party may appeal the court’s ruling but no decisions on this have yet been made.