UPDATE 1-Orckit to get $14.2 mln in arbitration settlement

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Oct 15 (Reuters) - Israel's Orckit Communications Ltd (ORCT.O) (ORCT.TA) said it agreed to settle and resolve its arbitration against Conexant Systems Inc (CNXT.O) and its predecessors in interest, for $14.2 million plus coverage of attorney fees.

Orckit's said its claims in the International Centre for Dispute Resolution arbitration arose from breaches of a supply agreement by semiconductor chips supplier Globespanvirata Inc during 2001-2003 prior to it being acquired by Conexant.

In August, Orckit, a telecommunications equipment maker, had said a New York-based arbitration panel, in an interim ruling, awarded it $12 million in damages, plus applicable interest and costs, from Conexant. (Reporting by Shikhar Balwani in Bangalore)