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LONDON (Alliance News) - Accsys Technologies PLC said Friday that a court has ruled it will pay GBP1.6 million to Diamond Wood China Ltd in damages, and a further GBP600,000 in legal costs.
Last year, the chemical technology group terminated its license with Diamond Wood, alleging that the company had failed to comply with contractual obligations. Diamond Wood subsequently served a notice of arbitration challenging Accsys and sought damages of over EUR140 million.
In July the arbitration tribunal ruled that Diamond Wood can only claim for limited damages, up to a maximum of EUR250,000. Additionally, it ruled that the licence agreement between the two parties is to continue. As a result Diamond Wood retains the responsibility for all Accoya Wood promotion marketing and selling to all customers within the licensed territories in the Far East.
Accsys stressed that after paying the award, its financial position will continue to be strong, and it remains confident of achieving a cash-flow positive position in the foreseeable future, as its sales continue to grow.
Shares in Accsys were trading 1.4% higher at 72.00 pence Friday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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