Unifi Inc. was on the losing end of its own arbitration case with DuPont, after an Arbitration Panel ruled in favor of DuPont in a case involving the two companies manufacturing alliance for the production of partially oriented polyester filament yarn. DuPont had charged that Unifi had not lived up to purchase obligations under the alliance agreement.
The company said last week that it had received a ruling on June 13th from the panel that it had awarded damages to DuPont, inclusive of interest, in the amount of approximately $16 million. DuPont sought arbitration a year ago, alleging breach of contract and seeking $85 million in damages from Unifi. The panel in March had not substantially breached its pact with DuPont.
UFI now expects to take a charge of approximately $14 million in its fiscal Q4 ending June 29, 2003 in addition to the $2 million charge taken in its fiscal third quarter.
