Struggling Norwegian gas carrier operator I.M. Skaugen has revealed it has entered a “massive legal process” with an old business partner, Canadian shipping giant Teekay.
Detailed at the top of its annual report, I.M. Skaugen described how it has become embroiled in a number of legal cases with Teekay after the latter decided to ditch an LPG/petchem pool operated by the Norwegian owner last November and shift a number of its ships to a rival pool of its own creation.
“In the aftermath of this a ‘surprise attack’, a massive legal process has followed between the parties,” I.M. Skaugen management wrote in its annual report. “Although Teekay has publicly announced that terminating the charters was for it a beneficial and profitable move, Teekay has taken legal steps against IMSK group of companies concerning alleged losses. It is evident that these activities cannot be measured against the commercial realities of a financial creditor and when looking at the tactical activities before November 16th, 2017 and the many legal activities afterwards there is a plan to scuttle the Norgas Carriers` activities and enable the competing Teekay pool to take over the business and the relationships. The IMSK group on its end has large counterclaims because of the events that have unfolded and leading up to unilateral terminations. The cases are currently being dealt with through the courts and in arbitrations, and we do believe that it will take some time for these to be resolved.”
Prior to last November Teekay and I.M. Skaugen had enjoyed a close working relationship that stretched back decades.
Two weeks ago I.M. Skaugen was granted a three-month moratorium by the High Court of Singapore to preserve the company’s restructuring process.
The court order follows I.M. Skaugen filing a restructuring application seeking a moratorium to commence the reorganisation of liabilities and businesses. The company presented a restructuring plan in April, which had the support from most of its stakeholders.