Tue, 09 Mar 2010
Surf wear company Billabong says it is facing a civil claim from its former Indonesian licensee, which is seeking compensation over the termination of its distribution licence in that country.

CV Bali Balance is asking for more than $58 million in compensation for losses it says it suffered from the alleged invalid termination.

It is also seeking $110 million for unspecified damages.

Billabong says it believes there is no basis for the civil claim.


Tue, 09 Mar 2010
From: JakChat
Comment by KuKuKaChu
From AAP

Billabong being sued by Indonesian distributor

Surfwear brand Billabong International is being sued by its former Indonesian licensee, CV Bali Balance, over the termination of its distribution licence in Indonesia.

The civil claim in the Denpasar District Court includes a claim for compensation of $US53 million ($A58.29 million) for specific loss which CVBB claims to have suffered from the alleged invalid termination, and $US100 million ($A109.99 million) for "unspecified" damages arising from the termination.

Billabong said it was highly unlikely that the civil claim would have any material adverse effect on its business or operations outside Indonesia.

It also would not affect revenue, profitability or the group's financial condition. Billabong's business in Indonesia represented about 0.7 per cent of its global sales in 2008/09.

Billabong said it terminated the licence in 2005 relying on a right of termination in the agreement with the licensee.

On termination, the licence had about three years remaining until expiry.

Billabong said that, although CVBB had signed a deed acknowledging the validity of the termination at the time, it now was disputing it.

"Billabong believes, on the basis of the legal advice it has received, that there is absolutely no basis whatsoever for CVBB's civil claim," the company said in a statement.

"In Billabong's view, the civil claim is simply tactical litigation in Indonesia to attempt to influence the settlement discussions which are ongoing between Billabong and CVBB."

Since the termination, Billabong has been conducting its business in Indonesia directly through its wholly-owned subsidiary, PT Billabong Indonesia.

But the company said litigation inherently was uncertain and there was a possibility of some judgment in Indonesia coming from the claim.

"Any judgment obtained would be enforceable against the assets of Billabong in Indonesia, which are immaterial to the Billabong group," the company said.



News Search/Filter
Transaction Rates
24 Nov 17
Buy
Sell
BTC1
108,609,249
108,609,249
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services