THE National Securities Market Commission (CNMV) has decided to temporarily suspend, with immediate effect, the listing of Duro Felgueradown 20% from Friday’s closing price. The reason for the collapse of Bag of the Asturian engineering company was the presentation of the Algerian energy company Sonelgaz of an arbitration request which could cost the Spanish company 413 million euros.
Concretely, the CNMV published this morning a request for arbitration presented by the Algerian energy company Sonelgaz against Duro Felguera. The dispute concerns the suspension of the contract for the combined cycle thermal power plant project Djelfain Algeria, the Asturian company announced in June.
In its complaint, Sonelgaz demands the lifting of the suspension of the contract, the resumption of work and compensation of approximately 413 million euros.
According to information sent by Duro Felguera to the CNMV, the Asturian company has until December 10 to present a written opposition to the arbitration. In this document, he will reject the request, arguing that the suspension of the contract is legal due to Sonelgaz’s failings. Additionally, Duro Felguera will seek compensation for the damages suffered.
Duro Felguera Problems
In June, the Asturian company justified the suspension of the project by claiming that the contract had to be adapted to a reality considerably changed by unrelated causes to the company, after several attempts at a solution. The Djelfa plant is one of the company’s largest international projects, and its shutdown has generated legal and economic tensions that will now be resolved through international arbitration.
“Given the need to adapt it to the current reality, substantially modified from its origin for reasons not attributable to Duro Felguera and after multiple attempts at a solution, it was agreed to suspend the work,” explained then the Asturian company.
