The Ministry of Finance has rejected a request by Israel Chemicals Ltd. (TASE: ICL) subsidiary Dead Sea Works to appoint an arbitrator on the royalties agreement signed by the parties, the company said in a notice to the Tel Aviv Stock Exchange (TASE) today.
On Thursday, the Ministry of Finance notified Dead Sea Works that it rejected the company's request to appoint an arbitrator on behalf of the government. The ministry's main claim is that the government has the sovereign right to establish the Sheshinski Committee, and that there is no dispute or disagreement between the parties over the franchise.
The Ministry of Finance adds, "An arbitration panel is not the place to attack the establishment of the committee, and the fact that the Sheshinski Committee was established is not a matter that can be a subject for arbitration."
Israel Chemicals says that the statement of claim is a financial claim arising from the franchise agreement, which is anchored in law, under which Dead Sea Works is claiming compensation for the damage caused, and which will be caused, from the breach of the agreement by the state.
Israel Chemicals adds that the company, on the advice of its legal counsel, rejects the Ministry of Finance's position, and is considering its next steps.
Published by Globes [online], Israel business news - www.globes-online.com - on March 30, 2014
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