A Thai company has taken the Singapore unit of Glencore to court urging it to declare the unit insolvent after a dispute over an undelivered oil cargo.
Thai Bitumen Company, the parent of asphalt maker Tipco Asphalt, told a Singapore court that Glencore's unit failed to pay $20.2 million in compensation for 600,000 barrels of crude oil.
Glencore's Singapore unit should be "therefore deemed to be insolvent and unable to pay its debts," according to court documents seen by Reuters.
In September, an arbitration hearing in London ruled that Glencore should compensate Thai Bitumen Company for its failure to deliver the cargo, a separate Thai stock exchange filing by Tipco said.
Glencore denied that it was in breach of the contract and relied on a force majeure clause, which the arbitration declared to be invalid, according to disclosure by Tipco to the Thai stock exchange.
The court documents also stated that Glencore claimed on Oct. 21 that Thai Bitumen had overcalculated the interest by $42,785.33.
Source: Reuters