As has previously been reported, AB Volvo’s subsidiary company KFAB had lodged guarantee claims against Bilia and Bilia had lodged counter-claims against KFAB. The dispute was referred to arbitration and the results of this arbitration process have now been announced.
It was the arbitrator’s task to examine claims from KFAB relating to some 50 items with a total value of approximately SEK100 million. Bilia’s counter-claims totalled approximately SEK 15 million.
The final result of the arbitration is extremely favourable for Bilia, as only a few of the items involved in KFAB’s claim were approved. As a result, KFAB has been instructed to pay most of Bilia’s costs for the arbitration process.
The arbitration process will have a positive effect on Bilia’s result, totalling around SEK 10 million, and it will be recorded in the accounts for the last quarter of 2005.
”It is pleasing that this dispute has been settled. I am naturally delighted that the result was so favourable for us,” says Bilia’s managing director, Jan Pettersson.
Göteborg, 16 December 2005
Bilia AB (publ)
For further information, please contact Bilia’s managing director, Jan Pettersson, or its CFO,
Gunnar Blomkvist, on +46 31 709 55 00.
