Israel Chemicals Ltd. Urged to Respect Arbitrator's Ruling to Refund Haifa Chemicals Ltd. Over 48 Million USD for Overcharging in 2009-2013

Jul 05, 2016, 07:49 ET from Haifa Chemicals Ltd.

HAIFA, Israel, July 5, 2016 /PRNewswire/ --

Haifa Chemicals Ltd., a leading global manufacturer of green fertilizers, turned this weekend to Israel Chemicals Ltd., demanding the immediate implementation of the decision by the Arbitrator, H.E. Justice (Ret.) Boaz Okun, and the ruling rendered by the examiner, CPA Danni Vaknin, appointed by the Hon. Arbitrator, determining that Israel Chemicals overcharged Haifa Chemicals by a total amount of over 48 Million USD from 2009-2013.

According to the ruling, Israel Chemicals took advantage of its dominant position in order to significantly overcharge Haifa Chemicals for the purchase of potash from 2009-2013.  

A letter sent over the weekend by Adv. Yossi Benkal, the representative of Haifa Chemicals Ltd., requires that ICL respects the Arbitrator's ruling as prescribed and pay within seven days the amount of the adjustment due with respect to the company's overcharging.

Haifa Chemicals announced that the purpose of the arbitration between the parties, which lasted for 5 years and ended as long ago as March 2014, was to rectify the market failure that allowed ICL to abuse its position against Haifa Chemicals for so many years.  

ICL recently reached a settlement with its other Israeli clients as part of a class action filed against it in respect of collecting exorbitant prices. Haifa Chemicals estimates that ICL will have to refund its clients additional significant amounts for overcharging in 2014-2015.  

Ben Gutman

SOURCE Haifa Chemicals Ltd.