Hallin and DDW-PaxOcean close to agreement on new build cancellation

Singapore: Hallin Marine, which was closed down last week by parent company Superior Energy Services, is close to reaching an agreement with DDW-PaxOcean over the cancellation of multi-service vessel CSS Derwent.

The vessel was ordered in 2010 and Hallin has tried to enact a refund of their prefunded amounts based upon refund guarantees provided by the yard.  The vessel has been delayed beyond the cancellation dates provided in the shipbuilding contract by close to two years.
 
The yard sought a court injunction with a hearing due last Thursday.  The hearing was suspended as both parties seek a compromise due to Hallin contributing to the late delivery with various spec changes on the vessel. It is believed that the compromise will involve Hallin receiving deposits it paid to a value of a little over $60m, while DDW-PaxOcean will take ownership of the vessel inclusive of Hallin provided OFE at over $100m mark.

Meanwhile, Hallin has cancelled around $23m worth of projects and is currently operating on a skeleton staff tasked with the job of helping to wind down the company, which is expected to take at least six months. [14/10/14]

 

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