THE Singapore High Court on April 22 granted the Marco Polo Marine's application for a stay of the entirety of the court proceedings instituted by PPL Shipyard (PPL) in favour of arbitration.
In addition, the Court has ordered costs of the application to be paid by PPL, a subsidiary of Sembcorp Marine, to Marco Polo Marine on an indemnity basis, said the latter on Monday morning.
The issue is related to the termination of a US$214.3 million jack-up rig construction contract between Marco Polo Drilling (MP Drilling) and PPL.
On Dec 1, 2015, the company announced that PPL had commenced legal action against Marco Polo Marine, demanding that the company, in its capacity as guarantor, make immediate payment of the second 10 per cent of the contract price (amounting to US$21.43 million) and interest alleged to have accrued thereon.
"The board had then stated its position that neither the company nor MP Drilling is under any obligation to make the payments claimed by PPL whether under the rig construction contract or the guarantee. The board had also stated in its announcement of Dec 1, 2015 that under the terms of the guarantee, PPL has no basis to commence legal action against the company in the Singapore courts. The board maintains its aforesaid position."
Arbitration proceedings in relation to the dispute have commenced, and Marco Polo Marine said further announcements on this matter will be made as and when appropriate.