Pacific Radiance in arbitration to claim US$10.6m on cancelled vessel contracts

OFFSHORE vessel owner Pacific Radiance said its subsidiary Pacific Crest has issued two notices for arbitration in Hong Kong against two Chinese shipbuilders. The shipbuilders are Shanghai Waigaoqiao Shipbuilding & Offshore Co and China Shipbuilding Trading (Shanghai) Co.

The arbitration comes after two contracts with the shipyards, both dated May 2013, were cancelled for the failure of the shipyards to deliver two platform supply vessels in accordance to their obligations, Pacific Radiance said.

Pacific Crest is claiming, among other things, the refund of the pre-delivery instalments paid to the shipyards of US$10.6 million plus interest.

Pacific Radiance last traded at S$0.29.