News - 12/04/2010

Realchemie Dispute

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European based generic agrochemical trading company AgChemAccess Limited (“AgChem”) delivered an amount of the herbicide metazachlor to the Dutch generic company Realchemie C.V. (“Realchemie”) in mid August 2008.

After Realchemie failed to pay the corresponding invoice, AgChem took Realchemie to the Dutch Court of Maastricht (“Court”) in November 2008. In this procedure Realchemie claimed that the delivered metazachlor was partly faulty. Realchemie also entered a counter claim, consisting of the restitution of a payment to AgChem concerning an earlier delivery by AgChem to Realchemie at the end of June 2008 of an amount of an insecticide which according to Realchemie was also faulty.

Throughout the lengthy Court proceedings AgChem has continuously and rigorously contested the aforementioned incorrect claims of Realchemie.

On the 31st of March 2010 the Court finally gave its verdict in this matter; the Court has convicted Realchemie to pay the (by now long overdue) invoice of AgChem for the delivered metazachlor, as well as the legal interest over the capital sum of this invoice and the legal costs of AgChem. The mentioned counter claim of Realchemie concerning the delivered insecticide was denied by the Court. In total Realchemie is obligated to pay immediately to AgChem the amount of almost € 100.000,--. This verdict is open to appeal by Realchemie within a term of 3 months from the verdict date.

On the 1st of April 2010 the Dutch lawyer of AgChem has summoned Realchemie to pay the aforementioned amount within a week. In case Realchemie does not make the payment on time, AgChem will enforce the verdict of the Court. This could consist of the public auction of all shares of two Dutch daughter companies of Realchemie (Realchemie Trading B.V. and Realchemie Nederland B.V.), whose shares were garnished by AgChem at the end of October 2008 to secure payment.



For further information please contact Mr Matthew Kealey 44 (0) 7917 732326 or matt@agchemaccess.com.
 

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