Pacific Radiance settles PSV dispute with two Chinese shipyards
Singapore’s offshore vessel supplier Pacific Radiance has reached a settlement with two Chinese shipyards regarding a dispute over construction contracts for two platform supply vessels (PSVs).
To remind, in June 2016, Pacific Radiance’s wholly owned subsidiary Pacific Crest issued notices of arbitration against Shanghai Waigaoqiao Shipbuilding & Offshore Co., Ltd., and China Shipbuilding Trading (Shanghai) Co., Ltd. arising from two shipbuilding contracts entered with the shipyards, for the construction of two PSVs for Pacific Crest.
Pacific stated that the arbitration notices followed the rescission of the shipbuilding contracts for the failure of the shipyards to deliver the PSVs in accordance with their obligations under the contracts. Pacific Crest, claimed, among other things, the refund of the pre-delivery installments paid to the shipyards for the PSVs, totaling $10.6 million, plus interest.
The company entered into a settlement agreement on Tuesday, September 6, 2016, with the shipyards in full and final settlement of the matter.
According to the settlement agreement, the shipyards will, within 60 calendar days of execution of the settlement agreement, refund to Pacific Crest in full the pre-delivery installments paid by Pacific Crest to the shipyards for the PSVs’ in the amount of $10.63, and the costs of equipment supplied by Pacific Crest to the shipyards in the amount of S$52,000 ($38,640) in accordance with the terms of the settlement agreement.
Offshore Energy Today Staff