LIG Defense & Aerospace (079550) said on the 27th in a corrected regulatory filing that a court had granted a temporary stay of a two-year ban on bidding for contracts with the central government, local governments and state-run institutions.
Under the court's decision, enforcement of the sanction, originally set to begin on Oct. 29, is suspended until Nov. 20. The company said its eligibility to bid is unaffected during that period, and that if a formal stay is granted, its bidding eligibility will remain unaffected until a ruling is issued in its suit seeking to overturn the sanction.
With the start of the sanction delayed, whether the company can continue bidding until a ruling in the main case is expected to hinge on the outcome of a formal stay hearing scheduled for the 5th of next month.
The Defense Acquisition Program Administration convened its defense contract review committee on the 20th and decided to bar LIG D&A from bidding for two years over allegations that the company paid hundreds of millions of won in bribes to an agency official during a weapons development tender. The company contested the decision on the 22nd, filing a request for a stay of enforcement along with a lawsuit seeking to overturn the bidding ban.