Arbitrator voids CPC oil hedge deal with Citibank-sources
August 1, 2011 05:42 pm
A Singapore-based international arbitrator on Monday voided an oil hedging deal between Ceylon Petroleum Corporation and Citibank , rejecting the bank’s demand for $192 million plus interest in payments it said it was owed, sources said.
“The decision has said that the entirety of the transaction is not right and Citibank’s claim has been dismissed,” one of five sources involved with the case at the International Centre for Settlement of Investment Disputes told Reuters.
Four other sources, who were involved on both sides of the case, confirmed the ruling. All spoke on condition of anonymity.
Last Month, a London court found Ceypetco owed nearly $162 million plus interest to Standard Chartered Bank for non-payment of hedging dues, after oil prices collapsed from the global highs in place when the agreement was signed. (Reuters)
“The decision has said that the entirety of the transaction is not right and Citibank’s claim has been dismissed,” one of five sources involved with the case at the International Centre for Settlement of Investment Disputes told Reuters.
Four other sources, who were involved on both sides of the case, confirmed the ruling. All spoke on condition of anonymity.
Last Month, a London court found Ceypetco owed nearly $162 million plus interest to Standard Chartered Bank for non-payment of hedging dues, after oil prices collapsed from the global highs in place when the agreement was signed. (Reuters)
