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    SembCorp increases Solitaire provisions by S$200 million

    News // December 10, 2004
    News that SembCorp Industries will book an additional S$200 million in provisions after losing an appeal against a ship conversion contract in London sent shares of the company sharply downwards at the end of November, closing down 2 per cent at S$1.45 each.

    The legal dispute, which is already nine years old, involves the bulk carrier Solitaire.

    Allseas Group had commissioned SembCorp to convert Solitaire into a pipe lay vessel in 1993, but terminated the contract two years later, alleging that SembCorp had failed to complete the work on time.

    SembCorp then took Allseas to court, claiming breach of contract.

    Some analysts estimate that SembCorp's liability could eventually be a massive S$600 million.

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