ERRIA wins lawsuit against Chinese yard
The tribunal in London, England has issued its ruling, which gives ERRIA fully uph held that ERRIA was entitled to cancel the last two new building contracts. The ruling means that the Chinese must release prepayments on the two new builldings which will reduce ERRIA's bank debt accordingly.
The ruling means that Rushan Ciity Shipbuilding Co. Ltd. must repay all prepaid installments of 25.4 million Euro, plus interest at 5 million Euros and pay reasonable costs. Pre-payments are secured through payment guarantees from a recognized Chinese bank. Claims are sent to Danish Bank as collateral.
Erria claimed the payment against the guarantor, but has not yet recognized the potential consequences of the arbitration award. Any accounting consequences will positively affect the financial statements significantly.
Erria A/S expectations for a positive outcome for 2012 have with above been stren ngthened.
