Dubai: Financially-troubled Gulf Navigation said it may have to take Dh229m provisions from a case involving Chinese firms for building two VLCCs after arbitrators awarded a decision against the UAE firm.
In a statement to the Dubai Financial Market, the company said it may have to take $29.1m provisions that it has paid as advance to the Chinese firms plus the legal costs totalling Dh111.5m in the first part. For the second part, it may have to take another $29.1m provisions plus the interest rate amounting to Dh117.67m in total, adding that PricewaterhouseCoopers is studying the numbers and the firm is waiting to receive the auditor's final recommendation.
“We received initial analysis from our lawyers, which does indicate appeal would be possible. Once we receive final recommendation from lawyers and select lawyers who will represent us for appeal, we will submit application for appeal within permitted 28 days, i.e. before 10th April, 2014,” said Dr Sandeep Kadwe, managing director of Gulf Navigation. [21/03/14]
Gulf Navigation loses arbitration case