Last checked at 25 Jun 2014 07:00
Trading Emissions PLC
25 June 2014
Trading Emissions PLC (the "Company")
Update on Carbon Arbitration
On 24 March 2014 the Company disclosed the following in Note 15 "Events after the Reporting date" as part of its Interim Financial Statements for the six-month period ending 31 December 2013:
"On the 20th March 2014, lawyers acting on behalf of the Company received a "Notice of Arbitration" challenging the enforceability of amendments that had been made to two CER Transaction Agreements that had previously been renegotiated with the respective Chinese counterparties to those CER Transaction Agreements.
The terms are for declaratory relief and sums alleged to be payable under the CER Termination Agreements. The Company intends to rigorously defend these claims".
On 23 June 2014 the Company received four further "Notices of Arbitration" in respect of four separate CER Transaction Agreements.
The aggregate sums alleged to be payable by the Company under all the Notices of Arbitration received to date amount to approximately €24m, being approximately €6m in the first two references, and the remaining €18m in the more recent references.
Having taken legal advice, the Company believes the claims made in the first two Notices of Arbitration to be unjustified and is rigorously defending them.
The four Notices of Arbitration received in June are currently being considered by the Company and its lawyers, but a preliminary review reveals the claims to be very similar to those brought in the first two references. As a result, the initial advice received by the Company is that the claimants will face difficulties in maintaining their claims and that these cases should be equally rigorously defended.
Further updates will be provided as appropriate.
Enquires:
IOMA Fund and Investment Management Limited +44 (0)1624 681250
(Philip Scales)
Liberum Capital Limited +44 (0)20 3100 2222
(Steve Pearce/Tom Fyson/Josh Hughes)