ABX and DHL duke it out in court

From the Columbus Business First:

ABX Air Inc. has told shareholders it considers its largest customer, DHL, in default under terms of two agreements between the companies. In a filing with the Securities and Exchange Commission on Friday, the Wilmington-based air freight carrier said DHL has withheld certain reimbursement payments under the companies' business accords.

DHL has claimed certain ABX expenses are no longer eligible for full reimbursement because its revenue from other customers has exceeded a 10 percent threshold of the carrier's total sales. The company also said the agreement doesn't cover ABX's costs in maintaining its public company status and fees incurred from its buyout talks with Astar Air Cargo Holdings LLC this summer.

ABX Air (NASDAQ:ABXA) in July rejected a $450 million buyout bid from the Miami-based freight carrier, calling its $7.75-a-share purchase proposal too low.

Responding to the 10 percent threshold allegation, ABX said the company excluded items from its calculations that would result in the 10 percent figure not having been reached. It also said DHL's refusal to pay the amounts might push ABX into default on some of its credit agreements.

ABX said it's considering pursuing a dispute resolution initiative, negotiating with DHL to settle the quarrel or other options that it did not specify.

Privately held DHL operates in more than 225 countries and territories, with 19 shipping centers and more than 1,300 employees in Ohio.

ABX Air runs 15 U.S. hubs and a fleet of 112 airplanes. The company recorded a $90.1 million in profit on $1.26 billion in revenue in 2006.