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    High Court dismisses Sembawang's Solitaire appeal

    News // December 10, 2004
    SembCorp Industries has announced that the High Court of in the UK has dismissed an appeal lodged by Sembawang Corporation in respect of the 'Choice of Yard' ruling made by the Arbitration Tribunal in the Solitaire ship conversion dispute.

    The Tribunal ruled in May 2004 that the owner of Solitaire, Allseas, did not breach its contractual obligation to mitigate costs when it chose a Newcastle-upon-Tyne shipyard to complete the conversion work. Sembawang then appealed to the High Court against the standard of mitigation of costs applied by the Tribunal.

    In the light of the High Court's decision to dismiss the appeal, the net exposure to Sembawang in the on-going arbitration is expected to increase.

    Accordingly, the Board of Directors of Sembawang has decided to make an additional provision of S$200 million.

    The final exposure to Sembawang will depend on the outcome of further hearings on other claims made by both parties in the arbitration, and the final quantum may differ from the current estimate.

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