You are here

SembMarine and Marco Polo enter into arbitration for spat

Thursday, April 7, 2016 - 08:22

Sembcorpmarine070416.jpg
The legal spat between Sembcorp Marine (SembMarine) and Marco Polo Marine is now under arbitration, after efforts to resolve it through the senior management and mediation failed.

THE legal spat between Sembcorp Marine (SembMarine) and Marco Polo Marine is now under arbitration, after efforts to resolve it through the senior management and mediation failed.

SembMarine said its subsidiary PPL Shipyard had on April 7 served a notice on Marco Polo Drilling, a subsidiary of Marco Polo Marine, to start arbitration proceedings. It has also, after that, received a notice from Marco Polo Drilling and Marco Polo Marine.

Marco Polo has alleged that SembMarine's PPL Shipyard had failed to comply with certain contractual obligations, and hence decided to terminate its contract. PPL Shipyard, which initially rejected the termination, took the same action after it said Marco Polo failed to pay a progress payment plus interest.

Both companies "referred the dispute to their senior management and to mediation but the dispute between the parties remains unresolved", SembMarine said in an update on Thursday morning.

sentifi.com

Market voices on:

The company added the issue is not expected to have any material impact on its net tangible assets and earnings per share for the current financial year.

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom