FPHC wins P2.5B from arbitration versus SunPower.
First Philippine Holdings Corporation (FPHC) and its subsidiaries have won P2.45 billion or $55.5 million from a second arbitration case in Singapore, this time against SunPower Philippines Manufacturing, Ltd. (SPML).
In a disclosure to the Philippine Stock Exchange, FPHC assistant corporate secretary Atty. Esmeraldo C. Amistad said they have been advised that a Partial Award dated January 28, 2015 has been rendered in the International Chamber of Commerce (ICC) arbitration proceedings.
Amistad said the case was brought by First Philippine Electric Corporation (First Philec) and First Philec Solar Corporation (FPSC) against SMPL.
"The Partial Award found SPML to be in material anticipatory breach of its obligations to FPSC under the supply agreement for silicon solar wafering services between FPSC and SPML," said Amistad.
It also found SPML to be in material breach of its obligations to First Philec under the joint venture agreement between First Philec and SPML.
As such, the Partial Award ordered SPML to purchase First Philec's shares in FPSC for the price of US$30.3 million by February 2, 2015 or such other date as the Parties may agree or the Tribunal may direct.
It also ordered SMPL to pay FPSC the net sum of US$25.24 million as compensation for wafers not taken by SPML and for unpaid silicon solar wafering services under the supply agreement within 14 days of the transfer of the shares from First Philec to SPML.
"The transfer of shares to SPML and the price of the shares are potentially subject to further orders which may be given by the tribunal in due course in one or more future Awards, which will also deal with the matter of which party or parties will be responsible for the costs of the arbitration," said Amistad.
FPSC is a joint venture company established by First Philec and SunPower to slice silicon solar wafers for SunPower. First Philec is a wholly-owned subsidiary of FPHC.
In October last year, FPHC won P3.2 billion from the final award rendered in the International Chamber of Commerce arbitration proceedings against Korean partner Nexolon Co., Ltd.
Amistad said the case was filed by First PV Ventures Corporation (First PV) and First Philec Nexolon Corporation (FPNC), as claimants against Nexolon as respondent.
Nexolon is a publicly listed Korean company involved in the photovoltaic industry. FPNC is a joint venture company established by First PV (70 percent) and Nexolon (30 percent) to slice silicon wafers for Nexolon.
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|Title Annotation:||Business News|
|Date:||Jan 29, 2015|
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