Tata Steel Europe gets $130 million in arbitration case

KOLKATA: Tata Steel on Wednesday said it has received an aggregate sum of $130 million or about Rs 585 crore as part of a commercial settlement on outstanding disputes between between Tata Steel UK and certain customers of the Teesside Cast Products Business.

The settlement follows the completion of arbitration proceedings between the two parties which took place under the ICC International Court of Arbitration.

Tata Steel UK's Teesside unit had to be shut down in 2009 after key customers of the plant walked away from a contract.

Among other matters, the arbitral tribunal found that the customers did not terminate their agreements. Earlier on January 5, 2011, Tata Steel UK had received a partial final award in its favour in the arbitration. Following that award, a commercial settlement to all disputes relating to the agreements were reached and on June 21, 2011, Tata Steel completed a full and final settlement of claims with the consortium.