TTS has settled the dispute with Ability Drilling. TTS has agreed to acquire one land rig for MNOK 75 with a seller’s credit for 2 years. All other claims in the matter are now resolved. – We are satisfied that this dispute has been settled without a long legal proceeding says Johannes D. Neteland.
The Dispute between TTS Group’s subsidiary TTS Sense and the bankruptcy estate after Ability Drilling was settled in legal mediation. As a consequence, the court proceedings was scheduled to start 10th of January 2011 are cancelled.
Initially the bankruptcy estate after Ability Drilling claimed TTS Group and its subsidiary TTS Sense for repayment and damages of a total of NOK 482 million. The basis for the claim was cancellation of contracts for land rigs ordered from TTS Sense. The claim was later revised upwards with the addition of value added tax and amounted to NOK 555 million. TTS has dismissed the claim and has sued Ability Drilling’s subsidiaries for remaining payments under the contract amounting to NOK 240 million.
The dispute is settled with the agreement where TTS acquire one land rig from the bankruptcy estate with a seller’s credit of 2 years. The agreement is subject to approval from the bankruptcy estate general assembly.
- Our view is that the agreement is a better solution than having a long court procedure says Johannes D. Neteland. The rigs that have been ordered and partly delivered to Ability hold a high standard. TTS has now 3 land rigs in stock after the agreement with Ability.
- The market for these rigs has been weak following the financial crisis. However, we believe the demand for these types of rigs will increase in the future says the TTS CEO.
About TTS Group ASA
TTS Group ASA (former TTS Marine ASA) is an international group that develops and supplies handling equipment for ships, ports and offshore oil and gas installations. Operations are organised into the following divisions: Marine, Energy and Port and Logistics. The TTS Group is among the world’s leading suppliers within their market segments.
At the start of 2010, the TTS Group has around 1 135 employees (not including associated companies), with a primary emphasis on engineering skills. The group has operative units in 15 countries: Norway, Sweden, Finland, Germany, the Czech Republic, Italy, Greece, China, USA, Canada, Mexico, Brazil, South Korea, Vietnam and Singapore.
TTS Group ASA’s head office is located in Bergen, Norway, and the company is listed on the Oslo Stock Exchange. Johannes D. Neteland (52) has been President and CEO of TTS since 1998.
Contact:
Johannes D. Neteland
President & CEO
Tel.: +47 918 46 906
Arild Apelthun
CFO
Tel.: +47 918 19 265
