- Dow received CAD $1.62 billion from NOVA after Alberta Court of Appeal's decision.
- The payment includes CAD $140 million in costs and post-judgment interest.
- The total amount of CAD $1.8 billion is subject to Canadian tax withholding.
- The case involves a jointly owned ethylene asset in Joffre, Alberta.
Payment Details
Dow has confirmed the receipt of a CAD $1.62 billion payment from NOVA Chemicals. This follows the Alberta Court of Appeal's decision to deny NOVA's request to stay the execution of a previous judgment. The payment is related to damages awarded due to NOVA's failure to operate a jointly owned ethylene asset in Joffre, Alberta, at full capacity.
Additional Costs and Interest
In addition to the damages, Dow received CAD $140 million in costs and post-judgment interest. This brings the total proceeds paid to Dow to CAD $1.8 billion.
Tax Withholding
The CAD $1.8 billion payment is subject to a Canadian tax withholding. Dow expects this amount to be remitted back to the company in full by the end of the year.
Background
In a 2019 ruling, the Court of Queen’s Bench had awarded Dow CAD $1.43 billion, which NOVA paid after findings of contractual violations between 2001 and 2012. Dow anticipates that the Alberta Court of Appeal will uphold the rulings on appeal.
