Production house WSG Nimbus, which saw its three-year television, radio and sponsorship deal with the Board of Control for Cricket in Sri Lanka (BCCSL) terminated on Tuesday, today threatened to sue for damages.

BCCSL claims it was forced to foreclose the agreement due to constant delays in contractually agreed payments by Nimbus. BCCSL also obtained an ex parte court order in Colombo in support of this

Nimbus, in an official release denied it had breached the agreement in any respect. The release further states that Nimbus would be going in appeal to have the order set aside and would also seek redressal "from BCCSL for the losses, damage and injury to its reputation and business emanating from this unjustified action by the BCCSL in seeking to terminate the agreement."

In January 2000, Nimbus had signed an agreement with BCSSL which was to run till 31 December 2003. According to the BCSSL, Nimbus has defaulted on its payments before as well. Last year in January, just before the England team's tour to the Emerald Isles, Nimbus had defaulted on its payments and had been taken to court, is the board's contention. Nimbus then agreed to execute bank guarantees before a certain date prior to every tour by cricket teams to Sri Lanka.

As per the agreement, in case Nimbus were to default in issuing this guarantee, the agreement between BCSSL and Nimbus would cease to be in force. There is a three-test series set to begin on 14 November with the West Indies and Nimbus has yet to execute the bank guarantees, BCSSL says. The board approached the Sri Lankan attorney-general who advised them that the agreement with Nimbus ceased to exist as they had failed to honour the contract, is the charge made by BCSSL.

Trans World International (TWI) which narrowly lost out to Nimbus on the original deal, reported to be $ 27 million, are now seen as favourites to secure the rights in the event that the termination stands.