12th Feb 2008
SINGAPORE: SembCorp Marine may have scored a minor victory over a dispute with BNP Paribas that could cost the Singapore shipbuilder. According to SembCorp, the High Court accepted as evidence "affidavits [showing], among other things, that BNP had agreed that JSPL need not confirm that it would make payment to BNP of the sum upon the close out of the foreign exchange transactions."
SembCorp is seeking an injunction against a winding-up petition BNP is threatening to file against Jurong Shipyard if the Singapore shipbuilder did not pay up US$50.7 million within 20 days from Nov. 20. The European bank served a statutory demand for the sum after SembCorp agreed to pay out US$115 million plus agreed interest to Societe General to close out forex trades, which was last reported to have resulted in a loss of around US$303 million.
SembCorp claimed the forex trades were unauthorised transactions performed by the then head of finance and had denied responsibility for the losses.The High Court hearing is scheduled for March 4 to 6.
