The contract was cancelled after several armored cars were delivered.
Hatehof Ltd. (TASE:THF) today notified the TASE that the Peru National Police has cancelled an order for armored cars, claiming that the company failed to meet some of the provisions of the contract. Hatehof's share price fell 8% on the news but partly recovered to a drop of 3.4% to NIS 1.19 by mid-afternoon, giving a market cap of NIS 62 million.
Hatehof, a manufacturer of armored cars and specialized vehicles for military and civilian uses, signed the NIS 42 million contract with the Peru police in late 2009, and had already delivered some of the armored cars.
Hatehof, controlled by David Oron, says that it is in compliance with the contract, and that it will attempt to reverse the cancellation of the contract.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2010
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