Raytheon, announced today its receipt of a decision in the arbitration between Raytheon Systems Limited (RSL, which is also known as Raytheon UK) and the United Kingdom Home Office relating to the eBorders program. The Arbitration Tribunal found that the Home Office had unlawfully terminated RSL for default in 2010 and therefore had repudiated the eBorders contract. The Tribunal denied all Home Office claims for damages and clawback of previous payments.
The Tribunal awarded to RSL damages and other monetary relief of approximately £185 million ($309 million). It also found that the Home Office had wrongfully retained the £50 million ($83 million) it had drawn on RSL letters of credit in April 2011. The Tribunal reserved ruling on costs and on the quantification of interest payable to RSL.
The Tribunal's ruling confirms that RSL delivered substantial capabilities to the UK Home Office under the eBorders program. Raytheon remains committed to partnering with the UK Government on key defense, national security and commercial pursuits.
Source: Raytheon Corporation (NYSE: RTN)
Date: Aug 18, 2014