The two Chinese shipyards, both subsidiaries of China State Shipbuilding Corp (CSSC), have contested claims of $5.55m issued via notices of arbitration by CA Offshore Investment, subsidiary of Pacific Radiance back in November last year.
“The board wishes to announce that on 29 June 2017 the shipyards have contested the claims and asset counterclaims against CA Offshore Investment in each of the arbitrations which include payment of the balance of the contract price unpaid and/or damages plus interest and costs,” Singapore-listed Pacific Radiance announced.
“The arbitrations are currently at their early stages,” the OSV owner and operator added.
The dispute between the parties arose from two shipbuilding contracts, both dated 18 December 2013, to build a pair of PSVs.
CA Offshore Investment issued notices of arbitration to the Chinese yards following the rescission of the contracts due to the failure of the yards in delivering the vessels in accordance to the contract obligations.