Pacific Radiance is suing Shanghai Waigaoqiao Shipbuilding & Offshore and China Shipbuilding Trading (Shanghai) over the construction contracts for two platform supply vessels (PSVs).
The Singapore-listed owner today 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 company’s subsidiary Pacific Crest, which initiated the arbitration, seeks a refund of the $10.6m in pre-delivery installments paid to the shipyards, plus interest. The shipbuilding contracts were signed on May 8, 2013.
Pacific Radiance says it served the two counterparties on June 13 with notices of arbitration in Hong Kong.
The arbitrations are currently in their “initial” stages, the company said.