World Fuel Services 2012 Annual Report Download - page 36

Download and view the complete annual report

Please find page 36 of the 2012 World Fuel Services annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

Item 3. Legal Proceedings
Cathay Pacific Litigation
On April 11, 2012, Cathay Pacific Airways Limited (‘‘Cathay’’) filed a writ in the High Court of the Republic
of Singapore against one of our subsidiaries, World Fuel Services (Singapore) Pte Ltd. (‘‘WFSS’’) alleging
property damage and bodily injuries arising out of the emergency landing of a Cathay aircraft in Hong
Kong on April 13, 2010, which Cathay alleges was caused by contaminated fuel supplied by WFSS.
Cathay also alleges that WFSS supplied contaminated fuel to a Cathay flight originating from the same
airport on April 12, 2010. On November 16, 2012, Cathay filed a Statement of Claim in the High Court of
the Hong Kong Special Administrative Region against WFSS and PT Pertamina (Persero), the party that
supplied the subject fuel to WFSS, alleging breach of contract and negligence. The case in Singapore has
been stayed pending resolution of the Hong Kong case. Although not specified in either the writ or the
claim, Cathay asserts damages relating to the incident of approximately $34.0 million. We intend to
vigorously defend against this claim, and we believe our liability in this matter (if any) should be
adequately covered by insurance.
Other Matters
We are a party to various claims, complaints and proceedings arising in the ordinary course of our
business operations including, but not limited to: (i) commercial and governmental contract claims, such
as property damage, demurrage, billing and fuel quality claims, (ii) environmental claims and
(iii) bankruptcy preference claims. We are not currently a party to any such claim, complaint or
proceeding that we expect to have a material adverse effect on our business or financial condition.
However, any adverse resolution of one or more such claims, complaints or proceedings during a
particular reporting period could have a material adverse effect on our results of operations or cash flow
for that period.
Item 4. Mine Safety Disclosures
Not applicable.
17