UPDATE 1-Arbitration panel tells ADA-ES to pay $38 mln to Norit

* Says panel announces interim award to Norit

* Holds ADA liable for breach of provision in agreement

* Dismisses Norit’s request for injunctive relief

* Shares fall as much as 38 percent

(Follows alerts)

April 11 (Reuters) – ADA-ES Inc , which operates
coal-powered plants and makes specialty chemicals, said it would
have to pay Norit Americas about $37.9 million in damages for a
breach of contract, sending its shares down as much as 38
percent.

Littleton, Colorado-based ADA said an arbitration panel
ruled that it breached a non-solicitation provision of a market
development agreement with Norit.

The panel also held ADA jointly liable with other defendants
for the payment of a royalty of 10.5 percent for 3 years and
then 7 percent for an additional 5 years on the sales of
activated carbon from its production facility.

“We are shocked and deeply disappointed by this ruling and
are working with counsel to determine our options,” ADA Chief
Executive Michael Durham said in a statement.

The Interim Award also dismissed Norit’s request for
injunctive relief, ADA said.

Shares of ADA were 37 percent lower at $13.80 on Monday
morning on Nasdaq.
(Reporting by Mayuresh Tungare in Bangalore; Editing by Jarshad
Kakkrakandy)

UPDATE 1-Arbitration panel tells ADA-ES to pay $38 mln to Norit