Glencore unit in legal spat with Thai firm over oil cargo
Friday, 02 December 2011 | 17:00
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
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.
Singapore unit should be "therefore deemed to be insolvent and unable
to pay its debts," according to court documents seen by Reuters.
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.
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.
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