Dispute between Glaston and customer proceeding to arbitration

Dispute between Glaston and customer proceeding to arbitration
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glaston.net
A dispute between Glaston and its customer regarding a heat treatment machine acquired by the customer, is proceeding to arbitration.

The customer claims the contract to be terminated and a compensation of approximately EUR 3.5 million, which would cover the acquisition price of the machine as well as, mainly indirect, damages caused to the customer. In addition, as a consequence of the termination of the contract, the ownership of the machine would be transferred back to Glaston. Glaston denies the customer’s claims and finds them unfounded.

The contract includes a limitation of liability concerning indirect damages and termination of the contract is only possible due to a material breach of contract. Based on the claim Glaston makes a provision of EUR 0.3 million. The issue has no impact on the company’s full-year 2019 guidance.

The arbitration will take place in Helsinki and Finnish law applies to the contract. Glaston estimates, that a resolution to the dispute is expected approximately during the first half of year 2020.

600450 Dispute between Glaston and customer proceeding to arbitration glassonweb.com

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