Out of interest arbitration tends to be based on fairness with somehow both parties walking away feeling both winners and losers.
Raisama have ploughed a lot of money into this project. So that is a big factor swaying factor in fairness. Also Blade only had to wait another 6 weeks to 26 June, so that another factor. At the time of late 2011 to May 2012 (and beyond) global financial markets were in turmoil, so that’s another factor in the fairness argument. Similarly BP secondary facility was in place, and that could have made the Legavi loan more undesirable as the payback period on the Legavi loan was extremely quick. Again another factor of fairness.
Blade had previously given Raisama extensions. So that is in their favour, although they only had to wait 6 more weeks and it was done and dusted with no dispute.
Also the head of Legavi was previously will attend the Court hearing, so should be willing to attend the arbitration hearing.
Whilst I feel Raisama should win the arbitration, it's hard to say what is a 'middle of the road' decision could be in this case. eg If Raisama have finance ready to go at the time of step 7 of the arbitration 9 step process, then maybe the arbitrator will say Raisama you win, but on the condition that if Raisama does not get the drawdown facility up and running within say 5 weeks, then Blade wins and must payout Raisama their $ X million.
RAI Price at posting:
2.2¢ Sentiment: None Disclosure: Held
