Norwegian offshore operator Boa Offshore has announced the cancellation of shipbuilding contracts for two multipurpose PSVs with Chinese yard Nantong Mindge Heavy Industry.
Two weeks ago Boa received a successful outcome from a London arbitration regarding the two contracts. Boa ordered the two vessels in May 2013 from Nantong Mingde and Sainty Marine, however construction was delayed when Mingde didn’t settle payment for various ship parts on time.
The cancellation includes a claim for repayment of all advance payments including interest, with refund guarantees in place with the yard’s bank which will be used should the yard does not settle within 30 working days.
The loan facility with China Development Bank Corporation has also been terminated and will be repaid by funds already in escrow.