Aker Braila fined 4.4m euros

Aker Braila shipyard will pay 4.4 million euros in penalties for failing to honour a shipbuilding contract from 1995. This was the decision of the Arbitration Court in Rotterdam. Its shares, which are listed on the RASDAQ, shed 10% on Tuesday, ending the day with no buy orders placed. The latest information from the company shows that the shipyard had made no provisions for a negative ruling by the Arbitration Court. Consequently, the company will have to cover the penalties from this year”s expenditure chapter. The amount Aker Braila must now pay is seven times the value of last year”s profits. When contacted by Ziarul Financiar over the news, officials from the company declined to comment. All parties involved in arbitration through international courts must commit to observing the court”s decision before the decision is delivered. The Rotterdam court found Aker Braila in breach of a contract for the delivery of eight ships to Gefonzo Roemenie BV, which began claiming damages in January 2001. ZF