Letters of credit (L/Cs) feature in an interim agreement reached in a dispute between Noranda Aluminum Holding Corporation of the US and the Jamaican government.
The dispute between the US company’s wholly-owned subsidiary Noranda Bauxite Limited and the Jamaican government relates to an argument over production levies.
The interim agreement will be in effect until either 31 December 2015 or the date on which an arbitration award is delivered, whichever is the earlier.
The Jamaican government has agreed to stay or discontinue its May application for an interim injunction restraining Noranda’s export of bauxite from Jamaica.
Noranda has agreed to provide interim levies to the government in the form of cash and irrevocable L/Cs.
Both parties have agreed that amounts provided under the interim agreement will be without prejudice to any and all rights of either party to contend that no levy is payable or that another levy rate applies.
Categories: Trade Based Financial crimes News