Chemanol exercises bank guarantee worth $10 mln on contract breach

14/11/2016 Argaam

Methanol Chemicals Co. (Chemanol) received $10 million Monday after it exercised a performance bank guarantee due to the non-compliance of one of its marketing agents to its offtake and other contractual obligations, the company said in a statement to the Saudi bourse.

The marketing agent that violated the contract obligation plans to seek arbitration, the chemicals manufacturer added.

The financial impact of this amount has been recorded in the company’s cash flow records, but the impact on net income won’t be registered until the legal dispute is fully resolved, the statement added. 


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