Clough G1 interim injunction - Update
23 July 2008
Clough advised today of a decision handed down by the Full Court of the Federal Court of Australia, by which it dismissed Clough Engineering Limited’s appeal against the Court’s earlier decision to lift an interim injunction.
The injunction related to the G1 project and prohibited encashment of performance guarantee bonds amounting to US$21.5 million. The Full Court’s orders will not be entered prior to Friday 25 July 2008, pending any application for further relief that Clough Engineering Limited may seek. Further advice will be issued should Clough Engineering Limited seek and be granted relief, otherwise the effect of today’s decision is that
encashment of the performance guarantee bonds will become automatic.
The Company maintains its previous guidance on this matter. No change in the accounting position is required should the bonds be cashed on Friday 25 July 2008. Further, the Company commits to continue with the rigorous pursuit of its rights under the contract as it continues to seek a negotiated settlement with ONGC.
Ends
For further information, please contact:
Andrew Walsh, Chief Financial Officer +61 8 9281 9373
Gaye Gelok, Manager Communications & Marketing +61 8 9281 9451/0413 336 323
About Clough
Clough is a leading Australian based engineering, construction and asset support contractor providing full project life cycle solutions to its clients for capital projects, marine construction, fabrication, asset support and mining.