GD Files for Arbitration in Portugal Pandur Deal

Oct 31, 2012 defense-aerospace.com

(Source: Reuters; issued Oct 30, 2012)

General Dynamics Flags Possible Risk on Portugal Arms Contract (excerpt)

WASHINGTON --- General Dynamics Corp said on Tuesday it had filed a demand for arbitration against Portugal's defence minister after he said he planned to terminate the company's seven-year contract to build 260 Pandur armoured vehicles for the Portuguese government.

General Dynamics said in a statement that the Portuguese defence minister had said on Oct. 16 that he intended to terminate the contract due to an alleged breach by the U.S. company. It gave no further details on the allegation.

The weapons and aircraft maker said it had been in discussions with Portugal about restructuring the contract, but had not been officially notified of any termination plans or breach of contract, and did not believe it had violated the contract.

"To protect our rights under the contract, we have filed a demand for arbitration," the company said in a 10-Q filing with the Securities and Exchange Commission. (end of excerpt)

Click here for the full story, on the Reuters website.


Click here for the Portuguese MoD’s related Oct. 22 release.