Singapore-based offshore vessel operator Pacific Radiance has won an arbitration award against a Chinese shipyard in a case involving two cancelled platform supply vessels (PSVs).
The arbitral award provides for the refund of the pre-delivery instalment amounting to $2.8m along with contractual interest from the date of payment of the instalments until the date of refund
The arbitration case began in November 2016 when Pacific Radiance’s joint venture firm CA ƶijϻ Investment Inc (CAOI) filed claims against Shanghai Waigaoqiao Shipbuilding & ƶijϻ Co and China Shipbuilding Trading (Shanghai) Co in the Hong Kong International Arbitration Centre (HKIAC), for the failure of the shipyards to deliver two PSVs in accordance with the shipbuilding contracts.
"As an update to the arbitration proceedings against the Shipyards, the Company wishes to announce that the HKIAC has on 17 May 2019, in respect of the H1350 arbitration, made an award in favour of CAOI for the refund of the pre-delivery instalment amounting to US$2,775,000 together with contractual interest from the date of payment of the instalments until the date of refund," said a stock exchange annoucement from the company.
Arbitration for the other vessel H1351 is ongoing.
CA ƶijϻ Investment Inc, had in November 2016 begun arbitration proceedings against the two shipbuilders and claimed, among other things, refunds for the pre-delivery instalments for the two vessels totalling US$5.55 million, plus interest.
Pacific Radiance is currently in discussion with potential investors to provide debt financing and has received indicative proposals to-date.