The arbitration case dates back to November 2016 when Pacific Radiance’s joint venture firm CA Offshore Investment Inc (CAOI) filed claims against Shanghai Waigaoqiao Shipbuilding & Offshore Co and China Shipbuilding Trading (Shanghai) Co in the Hong Kong International Arbitration Centre (HKIAC), for the failure of the shipyards to deliver two PSVs in accordance with the shipbuilding contracts.
“The company wishes to announce that the HKIAC has on 17 May 2019 (…) made an award in favour of CAOI for the refund of the pre-delivery instalment amounting to $2,775,000 together with contractual interest from the date of payment of the instalments until the date of refund,” Pacific Radiance stated.
The dispute between the parties arose from two shipbuilding contracts, both dated 18 December 2013, to build a pair of PSVs.
Meanwhile, Pacific Radiance is currently in discussion with potential investors to provide debt financing and has received indicative proposals to-date. The financially-shaken Pacific Radiance also intends to undertake new share issuance to raise equity funds.
The company announced last week that the new debt and new equity will be used to finance the potential acquisition, repay existing indebtedness, and for general corporate and working capital purposes.