Adaro unit faces lawsuit over breach of contract
Saturday, September 6 2014 - 04:31 AM WIB
IDX-listed coal mining firm PT Adaro Energy Tbk said Friday that its wholly owned subsidiary PT Makmur Sejahtera Wisesa (MSW) was facing lawsuit due to alleged breach of business contracts.
Adaro said in a statement that PT Punj Llyod Indonesia and PT Punj Llyod Pte Ltd have filed international arbitration with the Singapore International Arbitration Center against MSW with total claims worth 18.79 million euros.
MSW has been accused of breaching 2008 equipment supply and construction services contracts, and a guarantee coordination agreement signed with the two firms in relation to the development of a 2x30 MW coal-fired power plant. No further details about the project were provided.
Editing by Reiner Simanjuntak