MANILA, Oct. 9 (PNA) — After two years of court hearings, First Philippines Holdings Corporation (FPHC) has won the case against Korean firm Nexolon Corporation Limited at the International Chamber of Commerce due to its non-payment of dues.
”The Award orders Nexolon to: pay damages and pre-award interest to First Philec Nexolon Corp (FPNC) in the amount of US$ 24,796,717; and pay First PV Ventures Corp Php2,087,732,514 as payment for the put option price in consideration for First PV’s shares in FPNC,” FPHC said in a disclosure from the Philippine Stock Exchange (PSE) Thursday.
FPHC said that the Korean firm has until Nov. 2 to pay for the stated amount, or the charge will increase by 8 percent per year.
It added that both First PV and FPNC are considering options to pursue the award.
First PV is a subsidiary of First Philippine Electric Corporation, which is the manufacturing arm of First Philippine Holdings Corporation.
FPHC and Nexolon had teamed up to create FPNC, with ownership at 70 percent and 30 percent, respectively. The two companies had a Wafer Slicing Supply and Services Agreement, focused on slicing silicon wafers for Nexolon.
However, the partnership dimmed as FPNC was not paid by Nexolon for its service.
”FPNC has sought arbitration in order to enforce its rights under the Agreement, including the payment of unpaid sums of money by Nexolon, and for such other reliefs as the arbitration tribunal shall deem appropriate,” FPHC said in a disclosure in March 2012.
Nexolon is a listed company in Korea, involved in the power industry through photovoltaic systems.
On the other hand, First Philippine Holdings Corporation has investments in power generation, real estate development, roads and tollways operations, manufacturing and construction, financing and other service industries.
Its subsidiaries and affiliates include First Gen Corporation, Energy Development Corporation (EDC), First Philippine Industrial Corporation and Rockwell Land Corporation. It also has a 3.95 percent stake in the Manila Electric Company (Meralco). (PNA)