Erdenet enterprise finalizes its debt www.montsame.mn
Ulaanbaatar/MONTSAME/ ‘Erdenet’ state-owned enterprise has fulfilled a claim of ‘Standard’ Bank of South Africa and a decision of the London Court of International Arbitration (LCIA); thus it has completely resolved its debt issue, reported U.Enkhtuvshin, Deputy Prime Minister, and Kh.Badamsuren, Director-General of ‘Erdenet’ state-owned enterprise, on April 5.
On the grounds that its issuance of a guarantee on the loan that ‘Just’ Group received from ‘Standard’ Bank, the LCIA made a decision in 2013 that Erdenet enterprise must pay USD117 million in total, including of basic loan, interest, expenses on court proceedings and monthly interest, to the Bank.
Thanks to bilateral effective negotiations, held few times with the involvement of a mediator company, the parties reached an agreement to lower the payment three times. Accordingly, Erdenet enterprise paid USD40 million from its target-risk fund, finalizing its debt issue with the Bank, noted Deputy Prime Minister U.Enkhtuvshin.
An issue on taking the money issued from the risk fund back from culpable persons who caused this case to be tried at the international arbitration will be internally resolved at court.
Published Date:2019-04-10