Chemanol to get $5.5 mln in settlement with marketing agent

Methanol Chemicals Co. (Chemanol) reached on Sunday a settlement with a marketing agent, in which it will receive a total of $5.5 million for undistributed products under a performance bank guarantee worth $10 million, the company said in a statement.

Meanwhile, the agent will redeem the remaining amount of $4.5 million.

The chemical producer added that it expects the financial impact to show in Q2-2017.

Last November, Chemanol exercised a performance bank guarantee worth $10 million (SAR 37.5 million) due to the marketing agent’s non-compliance, yet the agent sought arbitration.