Court Dismisses Klesch Case Against Arkema
The International Chamber of Commerce Court of Arbitration has dismissed all claims by the Switzerland-based, US family-run Klesch Group against French chemical producer Arkema relating to the Klesch purchase of vinyls manufacturer Kem One in 2012.
In the ruling just handed down, the court ordered Klesch Chemicals to pay damages of €73.6 million to Arkema as well as reimbursing the majority of the French company’s costs.
As the opening scene of the protracted drama, the Klesch Group on Mar. 4, 2013 had accused Arkema of misrepresenting the financial position of its vinyls business and sought compensation of €310 million. Arkema, which said it was “deeply shocked” by the allegations, vowed to take all necessary steps to defend itself.
At the end of March 2013, Kem One filed for bankruptcy and at the beginning of 2014 was acquired by a consortium of Alain de Krassny, the 72-year-old supervisory board chairman of Austrian chemical producer Donau-Chemie, and US private equity group OpenGate Capital.
