Pacific Radiance starts arbitration proceeedings over PSVsVessel & ROV News // June 14, 2016
The Board of Directors of Pacific Radiance Ltd has announced that its wholly-owned subsidiary, Pacific Crest Pte Ltd (PCPL), has issued two notices of arbitration for arbitration in Hong Kong against Shanghai Waigaoqiao Shipbuilding & Offshore Co Ltd and China Shipbuilding Trading (Shanghai) Co Ltd arising from two shipbuilding contracts, both dated 8 May 2013, for the construction of two platform supply vessels (PSVs).
The arbitration notices were issued regarding the cancellation of the shipbuilding contracts following failure of the yards to deliver the PSVs in accordance with their obligations under the contracts.
PCPL is claiming the refund of the pre-delivery instalments paid to the shipyards for the PSVs, totalling US$ 10,632,000, plus interest.
"The arbitration is at an early stage," said Pacific Radiance. "Further announcements will be made by the board at the appropriate junctures in the event of any material developments."