Pacific Radiance has reached a settlement with Shanghai Waigaoqiao Shipbuilding & Offshore and China Shipbuilding Trading (Shanghai) over the disputed construction contracts for two platform supply vessels (PSVs).
The Singapore-listed owner served the two counterparties with notices of arbitration in Hong Kong on June 13.
At the time, it said the arbitration “follows the rescission of the shipbuilding contracts for the failure of the shipyards to deliver the PSVs in accordance with their obligations under the shipbuilding contracts”.
The Chinese shipyards have agreed to refund the $10,632,000 in pre-delivery installments paid by the claimant’s subsidiary Pacific Crest. The shipbuilding contracts were signed on May 8, 2013.
In addition, the yard must repay $52,000 in costs of equipment supplied by Pacific Crest to the facilities.
The refund must be made within 60 days of the execution of the agreement, which is dated September 6, 2016.