British Justice orders Santander to pay 81 million as a guarantee for a TSK plant in Mozambique
The entity, obliged to pay the guarantees related to a thermal plant after the Asturian engineering company TSK broke the contract due to a cyclone, despite the injunctions granted last year by a court in Móstoles.
Santander has been ordered by a UK court to pay $90 million, approximately €81 million, to a company involved in a thermal power plant project in Mozambique. The court ruled that the bank must honour its bank guarantees after the project's contractor, TSK, terminated the contract due to a cyclone. The dispute began when TSK cited a cyclone as a reason to exit the contract, and Santander was asked to pay out on its guarantees, but the bank had obtained a temporary injunction in a Spanish court to block the payment.
The UK court found that Santander's actions in Spain did not constitute execution of the contract, and therefore, the payment was legal under Mozambican law.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
