Coastal GasLink is seeking $1.2 billion from contractor Pacific Atlantic Pipeline Construction citing poor performance.
If the Alberta judge allows CGL to call the letter of credit, financial losses for PAPC and Bonatti could snowball, the companies told the court.
They may be unable to pay arbitration fees, complete current projects or bid for other projects, which could lead to insolvency of PAPC, Bonatti Chairman and CEO Andrea Colombo said in a sworn statement. billion Canadian dollars as part of its arbitration proceedings.
TC Energy's chief financial officer said in November that CGL would not would probably provide only a small financial return to TC Énergie after the depreciations. TC Energy does not expect current or potential legal proceedings to have a material impact, according to its 2022 annual report.