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    Swissco involved in disputes with several parties

    Company News // October 14, 2016

    The board of directors of Swissco Holdings Limited says the company is involved in legal proceedings with a number of parties.

    The first is an arbitration claim against Tyloo Investment Group Co Ltd and Tyloo Offshore SA for US$26,100,000. Arbitration proceedings have commenced in Hong Kong in relation to a US$26,100,000 claim by group’s 50 per cent owned joint venture company, Star Excellence (HK) Limited, against charterer Tyloo for outstanding charter hire amounts due and owing to Star Excellence under a bareboat charterparty entered into between the parties. The board is of the view that Star Excellence has valid grounds for its claim and is fully entitled to the charter hire under the bareboat charterparty.

    The second dispute is an arbitration claim against Nanjing East Star Shipbuilding Co Ltd and Jiangsu Skyrun Shipbuilding & Trading Co Ltd for US$5,200,000. Arbitration proceedings have commenced in Hong Kong in relation to the claim by the company’s wholly-owned subsidiary, Swissco Offshore (Pte) Ltd against Nanjing East Star and Jiangsu Skyrun for a refund of the first and second instalments paid by Swissco Offshore, following the termination or rescission of the shipbuilding contracts entered into between Swissco Offshore and each of Nanjing East Star and Jiangsu Skyrun, by reason of substantial delay in the completion and delivery of the contracted vessels. The board is of the view that Swissco Offshore has valid grounds for its claim and is fully entitled to the refund of the two instalments paid to Nanjing East Star and Jiangsu Skyrun under the shipbuilding contracts.

    The third dispute relates to a letter issued by X-Drill Holdings Inc for US$1,694,500.51. The board at Swissco referred to an earlier announcement where it was stated that the company has been informed that US legal proceedings have been commenced by X-Drill against four Hong Kong incorporated companies within the group, Supreme Excellence 1 (HK) Limited, Supreme Excellence 2 (HK) Limited, Supreme Excellence 3 (HK) Limited and
    2 Supreme Excellence 4 (HK) Limited in relation to services provided by X-Drill to rigs owned by SE1 to SE4.

    The company received, and on 5 October 2016 responded to, a letter and purported statutory demand issued by X-Drill’s Singapore solicitors, alleging that the company was liable to X-Drill for the amount of US$1,694,500.51 that is allegedly due and owing under the service contracts entered into between X-Drill and each of SE1 to SE4.

    Swissco's board said is of the view that X-Drill’s claims against the company are entirely baseless and without merit as the company is not a party or corporate guarantor to any of the service contracts, and consequently is not liable for any amounts due by SE1 to SE4 to X-Drill under the contracts. Swissco said it intends to vigorously oppose X-Drill’s claims and take all necessary legal steps to protect its interests.

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