BIP Biofutures

TIDMBIP

RNS Number : 2870X

Biofutures International plc

13 February 2012

13 February 2012

Biofutures International plc

("Biofutures" or the "Group")

Result of Arbitration

The Group has received the results of the arbitration entered into by its subsidiary, Zurex Corporation Sdn Bhd ("Zurex"), and JJ Lurgi Engineering Sdn Bhd ("Lurgi"). The matter before arbitration was a claim by Zurex against Lurgi for RM9.89m and a counter claim by Lurgi for RM2.87m in relation to a contract dated 26 January 2007 for the supply by Lurgi of components for the construction of a biodiesel plant (the "Contract").

The arbitrator has concluded that the contract between Zurex and Lurgi was not terminated and, as a consequence, has dismissed the claims by both parties with each side paying its own costs. The directors of Biofutures are disappointed by the outcome as the Group had received legal advice that its case would be successful. The Group and its legal advisers are reviewing the decision.

Since the value of the assets under the Contract has been impaired in prior years; no provision had been recognised in respect of the claim against Zurex; and there is no direct liability arising as a consequence of this conclusion, the arbitration decision is not expected to have any material effects on the Group's results.

Enquiries:

 
 Biofutures International plc                Tel: + 603 6203 5136 
 Joe Wong, Chief Executive Officer 
 www.biofuturesplc.com 
 
 Daniel Stewart & Company plc          Tel: + 44 (0) 20 7776 6550 
 Antony Legge / James Thomas (Nomad) 
 Colin Rowbury (Broker) 
 www.danielstewart.co.uk 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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