RPC Jumps 28% after Civil Court Orders PTT to Pay for Damage of Agreement Termination

In the afternoon session on September 19, 2019, the share price of RPCG Public Company Limited (RPC) rose as much as 28% from the closing price at ฿0.64/share yesterday to ฿0.82/share, increased ฿0.18/share.

 

The sudden surge in RPC share price was due to the verdict of the Civil Court to rule against PTT Public Company Limited (PTT) in the dispute with RPC.

Refer to PTT filed a petition with the Civil Court on 30 June 2016, requesting the Civil Court to revoke the award granted by the arbitral tribunal (Dispute Black Case No.114/2552) that require PTT to pay damages for the unlawful termination of the agreement with RPC in the amount of 390 million baht per annum starting from February 1, 2012 until the date on which the arbitral tribunal rendered the arbitration award (March 25, 2016), together with 7.5% interest per annum on such amount of damages calculated on the date on which the arbitral tribunal rendered the arbitration award until PTT makes payment in full to RPC at the Civil Black Case No.Por.3016/2559.

Subsequently, on December 16, 2016, RPC submitted a petition to the Civil Court in regard to the Civil Black Case No.Por 6000/2559 requesting a judgment to enforce compliance with the arbitral award requesting RPC to compensate for the final payment of raw materials of condensate residue (CR).

On 19 September 2019, the Civil Court rendered a verdict on the Civil Black Case No.Por.3016/2559 and the Civil Black Case No.Por 6000/2559, which the Civil Court issued the judgment in accordance with the arbitral award to order PTT to pay damages for the unlawful termination of the agreement with RPC.