RI firm seeks arbitration

RI firm seeks arbitration

SINGAPORE (Dow Jones): Indonesia's Asia Pulp & Paper Co. (APP) has filed a notice of arbitration in Singapore against Beloit Asia Pacific, the company said in a statement released late Wednesday.

The Indonesian pulp and paper maker will seek arbitration for the refund of some $46 million paid to Beloit Asia for two large, fine paper machines, and a declaration that Beloit Asia breached its financing obligations under the purchase contracts.

Beloit Asia Pacific is a unit of Harnischfeger Industries Inc. (HPH) of the U.S.

Tuesday, Harnischfeger said it would seek arbitration for the full payment from Asia Pulp for the machines as well as at least $125 million in damages and delay costs, and will "vigorously defend" against Asia Pulp's assertion that it is entitled to a return of payments under the contracts for these machines.