Pacific Radiance settles with two Chinese shipyards over cancelled contracts

PACIFIC Radiance on Wednesday updated that its unit Pacific Crest has entered into a settlement agreement on Sept 6 with shipyards Shanghai Waigaoqiao Shipbuilding & Offshore and China Shipbuilding Trading (Shanghai) "in full and final settlement of the matter".

Earlier in June, the offshore vessel owner had said that Pacific Crest had issued two notices for arbitration in Hong Kong against the two Chinese shipbuilders after two contracts with the shipyards were cancelled due to their failure to deliver two platform supply vessels, in accordance with their obligations.

At the time, Pacific Radiance also said that Pacific Crest was claiming, among other things, the refund of the pre-delivery instalments paid to the shipyards of US$10.6 million plus interest.

On Wednesday, it said that under the settlement agreement, the shipyards will - within 60 calendar days of execution of the agreement - indeed refund to Pacific Crest in full the pre-delivery instalments of US$10.6 million, plus the costs of equipment supplied to the shipyards of S$52,000.