Klaveness Combination Carriers

Klaveness and Alba reach a settlement agreement and enter into new freight contract

Oslo, 6 January 2014 -- The ship owner Torvald

Klaveness has reached a global settlement with Alba

(Aluminium Bahrain) where both parties waive their

financial claims towards each other. In parallel, the

parties re-establish their business relations by

entering into a new long-term freight contract. The

agreement has an expected annual turnover of

approximately USD 25 million based on today's market

rates.

In February 2013, Torvald Klaveness, through its

subsidiary Cabu Chartering AS, commenced arbitration

in London against Alba claiming compensation for

economic loss incurred as a result of alleged breach

of a freight contract from 2008. Alba in turn

commenced proceedings against Klaveness at Oslo

District Court seeking compensation for alleged

overbilling in connection with a previous freight

agreement negotiated through a broker. After some

dialogue, the parties have agreed to drop their

respective claims. The settlement, which includes

Trond Harald and Tom Erik Klaveness personally, also

provides that the parties waive any rights to later

litigation of these claims in any jurisdiction in the

world.

At the same time, Cabu Chartering AS and Alba have

entered into a new, large and long-term freight

contract for alumina from Australia to Bahrain. The

agreement is a multi-year contract and is entered

into at market terms.

"These agreements mark an important normalization of

our relations with Alba. We agree to put all

disagreements behind us and re-establish the

cooperation we have enjoyed through many years. This

is duly marked by the signing of a freight contract

which is regarded as strategic to both them and us,"

says Lasse Kristoffersen, CEO of Torvald Klaveness.

For further information, please contact

CEO Lasse Kristoffersen, mobile phone +47 22526238

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