The Asturian engineering company Duro Felguera does not raise its head. If on November 8 its CEO, Jaime Argüelles, announced his resignation, today the news broke that the Algerian company Sonelgaz is demanding 413 million euros for the suspension of Djelfa’s contract in that country.
Sonelgaz has submitted an arbitration request to the Algerian Chamber of Commerce and Industry in which it asks to lift the suspension of the contract and resume work, in addition to the aforementioned compensation, as reported this Monday by Duro Felguera to the National Commission of the Market of Securities (CNMV).
Duro Felguera has announced that it will present a written opposition to the requested arbitration before December 10 and will reject the claim, understanding that the suspension of the contract “is in accordance with the law due to the breaches that Sonelgaz has incurred.”
In addition, Duro Felguera has communicated that he will request, among other issues, the corresponding compensation for the damages caused.
It should be remembered that last June, the Asturian company informed the CNMV of the suspension of work on the Djelfa combined cycle thermal power plant project in Algeria.
“Given the need to adjust it to the current reality, substantially altered from its origin for reasons not attributable to Duro Felguera and after multiple attempts at a solution, it has been agreed to suspend the work,” the Asturian company explained then.
As already explained, this is the latest bad news for a company that on November 8 announced a restructuring of its leadership, in a context of imbalance in its accounts despite the rescue and the capital injections received. As ABC already explained, in the first half the company accumulated losses worth 26.3 million euros; In addition, this year it has been forced to review the schedule for returning the ransom to SEPI.
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