Pacific Radiance starts arbitration proceedings against Chinese yardsCompany News // November 22, 2016
The Board of Directors of Pacific Radiance Ltd have confirmed that CA Offshore Investment Inc (CAOI), a joint venture company in which it has a 50 per cent stake, (“CAOI”), has issued two notices of arbitration, for arbitrations in Hong Kong against Shanghai Waigaoqiao Shipbuilding & Offshore Co Ltd and China Shipbuilding Trading (Shanghai) Co Ltd.
The proceedings arise from two shipbuilding contracts, both dated 18 December 2013, entered with the shipyards by its wholly-owned subsidiary Pacific Crest Pte Ltd and novated to CAOI for the construction of two platform supply vessels (PSVs).
The issue of the notices of arbitrations follows the rescission of the shipbuilding contracts for the failure of the shipyards to deliver the PSVs in accordance with their obligations.
CAOI claims, among other things, the refund of the pre-delivery instalments paid to the shipyards for the PSVs, totalling US$5,550,000, plus interest. The arbitrations are currently at an initial stage.