EuropeOffshoreShipyards

Boa Offshore gets full refund from Nantong Mingde for cancelled PSVs

Norway’s Boa Offshore has received the remaining 50% refund of its advance payments made to the Nantong Mingde shipyard for two multipurpose platform supply vessels (MPSVs) it ordered in 2013 and cancelled in July 2015.

The first 50% refund installment was received from the yard’s bank on February 5, but neither payment includes interest on the down-payments made by Boa, which says it will “continue the legal process” to collect the interest it claims it is owed.

The refund relates to an arbitration won in London last year by the offshore service provider against Nantong Mingde Heavy Industry, regarding contracts for the MPSVs.

BOA made the initial down-payments on the two MPSVs, but their construction was delayed when Mingde didn’t settle payment for various ship parts on time.

The arbitration, which was commenced in December 2014, enabled BOA to move towards cancelling the contracts, which it did in July 2015. Nantong Mingde declared bankruptcy last year.

The cancellation included a claim for the repayment of all advance payments including interest, with refund guarantees in place with the yard’s bank, which were to be used should the respective yards fail to settle the refunds within 30 working days.

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Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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