Frontline plc has confirmed today that the Emergency Arbitration claims filed by Euronav have been fully dismissed by the Emergency Arbitrator.
The decision was issued today, and in addition to fully dismissing the claims, orders Euronav to pay to Frontline all costs of the Emergency Arbitration proceedings, including full compensation for legal costs incurred.
As it is said in today´s Frontline´s statement “this decision strengthens Frontline’s position that its decision to terminate the combination agreement was entirely lawful.”
It is worth mentioning that the Antwerp-based tanker owner Euronav has filed an application request for arbitration on the merits against Frontline´s decision to terminate the combination agreement signed in July 2022. Frontline plc has announced that will no longer proceed with the merger with Euronav. The two companies in July 2022, have signed a combination agreement to create a leading global independent oil tanker operator, as it was stated at that time by Frontline.
Euronav insists that Frontline´s decision to terminate the merger has no basis and after assessment has filed against the company as “it failed to provide a satisfactory reason for its decision to pursue termination”.
A judgment in the pending emergency arbitration proceedings was expected today on 7th of February 2023.
“Euronav NV informs its shareholders that on 28 January 2023 it has filed an application request for arbitration on the merits in relation to Frontline’s unilateral action in pursuing the termination of the combination agreement of July 10, 2022. Euronav has assessed that Frontline’s unilateral action in pursuing the termination of the combination agreement has no basis under the terms of the combination agreement and that Frontline failed to provide a satisfactory reason for its decision to pursue termination”, as the company said in January in a statement.
Frontline plc in January with a release has confirmed that it has received from Euronav NV an arbitration request for proceedings on the merits, following Frontline’s decision to terminate the combination agreement. “Frontline led-by John Fredriksen is currently analysing this request with its legal advisors,” as it was stated at that time by the company. “The request for proceedings on the merits is in addition to Euronav’s earlier emergency arbitration request for urgent interim and conservatory measures,” as it is furthermore stated.
