Sure any legal action with a partner on a major project is not good news, but i do think the situation outlined under todays announcement is better than the one presented to us on June 2.
If this matter were to be contested under D&C's preferred Judicial Precuationary Measure (JPM) as outlined on June 2, this would become a very long and drawn out affair. As today's announcement states "A JPM makes no determination on the merits of a claim." Therefore after the lengthy JPM process it is likely to then move to the courts for further deliberation ie more time.
By SRK initiating proceedings as per todays announcement the arbitration process will be initiated immediatley, and should be concluded in a reasonable time frame.
This sounds to me like a far more timely and unequivocal approach (which is what we want), rather than the JPM being talked about by D&C. SRK PR spin aside i think it is pretty obvious who is more confident in defending their position, and now with a $17.5m penalty hanging over their head should their claims fail, i think this may cause D&C to reconsider their position. Here's hoping anyway
SRK Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
