CIMC Raffles recovers arrears from Schahin

Shanghai: Offshore equipment builder CIMC Raffles announced that it has received $105.5m including the principal of $77.6m, interest of $27.7m and legal expenses of $230,200 from Brazilian company Schahin Group under a ruling of the London Arbitration Tribunal.

CIMC Raffles built two oil drilling platforms, SS Pantanal and SS Amazonia, for Schahin Group in 2010 and 2011. During the construction, CIMC Raffles provided advances for Schahin to complete the construction and delivery of the platforms. However, Schahin didn’t pay the balances and the advances according to the contracts. CIMC Raffles had lodged litigations and arbitration applications in both the US and UK since December 2011 and it has won the US case in 2013.

CIMC Raffles said recovery of the balances is expected to have a positive impact on the financial position of the company for the year. [19/09/14]

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