Sequana to appeal ruling in legal dispute with BAT
High Court of Justice determined that Sequana had to pay $138m in remedy to British American Tobacco but granted the company a stay of execution on the first instance order.
Sequana Capital, the holding company of Arjowiggins and Antalis, announced that it would lodge an appeal against the decision made by the British High Court of Justice in London in the proceedings between Sequana and British American Tobacco (BAT) Industries.
In two judgements dated 11 July 2016 and 10 February 2017, the court ruled that Sequana must remit to BAT a part of the dividend that it received from its former US subsidiary Windward Prospects Limited (formerly Arjo Wiggins Appleton) in 2008 and 2009 and ordered Sequana to pay at least €130m ($138m), subject to a maximum of €135m plus interests, to BAT.
The decision of the High Court of Justice reportedly did not create any direct liabilities for Sequana's subsidiaries Arjowiggins and Antalis.
BAT, Windward Prospects and several other companies were involved in an environmental scandal between the 1950s and 1970s in the US-state of Wisconsin and were to come up for cleaning up the contamination in Fox river. BAT went to court claiming that Windward Prospects should not have paid the dividends to Sequana as the payments provoked the risks of Windward Prospects failing to meet its indemnity obligations.
The High Court of Justice granted Sequana a stay of execution of the 10 February 2017 decision pending a decision by the Court of Appeal, the company explained.
Find the entire article and any associated background information in EUWID Pulp and Paper 7.2017.
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