ST Eng: Has received notice of termination from Louis Dreyfus Armateurs (LDA) for shipbuilding contract of a passenger ferry contracted in Jul 2007 for total price of S$179.0m. LDA alleges that there is a delay and even if tendered for delivery, there will be a deficiency of the ferry capacity. ST Eng will be req to refund milestone payments of $129.0m plus interest and the liability for damages is capped at 10% ($17.9m) of contract price...
Co has referred this case to its legal advisers. UBS issues a note maintaining Neutral with TP$3.36. House expects profit recognized to be reversed (est 5.5% of 2011 net profit) but could still sell the vessel to a 3rd party.
No comments:
Post a Comment