- Wellard Limited (WLD) successfully resolved its arbitration proceedings against the Croatian Bank for Reconstruction and Development (HBOR)
- Wellard is entitled to receive payments plus interest amounting to approximately $16.6 million (US$12 million) within 14 days
- HBOR disputed payment under the refund guarantees, and Wellard was forced to commence arbitration to recover the funds
- The refund guarantees were for advance payments of US$8 million and €1.6 million, plus interest accruing until full refund is made
- Wellard Limited (WLD) last traded at $0.09 per share before market open on January 5
Livestock shipper Wellard Limited (WLD) has successfully resolved its arbitration proceedings against the Croatian Bank for Reconstruction and Development (HBOR).
Wellard is entitled to receive payments plus interest amounting to approximately $16.6 million (US$12 million) within 14 days.
HBOR issued Wellard’s subsidiary, Wellard Ships Pte Ltd, refund guarantees supporting a terminated 2015 contract.
The contract was for the building of a livestock vessel to have been known as the M/V Ocean Kelpie with the Uljanik d.d shipyard.
HBOR disputed payment under the refund guarantees, and Wellard was forced to commence arbitration to recover the funds.
Wellard had taken successful arbitral proceedings against the original Croatian shipbuilders in 2020, for a refund paid by Wellard related to the shipbuilding contract, plus costs and interest.
In 2019 the Uljanik d.d. shipyard was placed into interim receivership which proceeded to full insolvency, with the result that the refund was not able to be paid to Wellard.
Arbitral proceedings were commenced against HBOR seeking to enforce the two refund guarantees which secure the advance payments made to Uljanik.
The refund guarantees were for advance payments of US$8 million and €1.6 million, plus interest accruing until full refund is made.
The precise amount received will be reported by Wellard in its statutory financial reports.
Costs have been reserved, and Wellard will be assessing and claiming its reasonable costs.
The dispute with HBOR was subject to London arbitration under English law.
Payment must be made within the next two weeks.
Wellard Limited (WLD) last traded at $0.09 per share before market open on January 5.