CTCI Says Not Liable to Pay Damages for Hsinta Power Project's Unit 1 Shutdown; Shares Sink 8%
CTCI Corporation (TPE:9933) has countered the claims that it is liable to pay damages for the fire incident that occurred at Unit 2 of the Hsinta Power Plant Renewal Project last year, according to a Tuesday filing to the Taiwan stock exchange.The company's shares were down nearly 8% in Wednesday's trade.The company, along with GE Vernova International, was a contractor of Taiwan Power Company's Hsinta power project, and has received claims for liquidated damages of $540,716.33 and power generation losses of NT$2.80 billion for Unit 1.CTCI and GE Vernova said the shutdown of Unit 1 was not affected by the fire incident but ordered by Kaohsiung City Government, and is therefore a force majeure event that is not attributable to the contractor.Also, the contract states that the contractor is not liable to Taiwan Power Company for any consequential damages, including power generation losses.Therefore, to challenge the claims, CTCI and GE Vernova will engage lawyers to develop legal countermeasures.
