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Sealink settles shipbuilding dispute with Boustead

Sealink settles shipbuilding dispute with Boustead
Sarawak-based offshore services vessel provider Sealink International's four-year dispute with Boustead Heavy Industries Corp unit Boustead Penang Shipyard (BPS) over a shipbuilding contract has been settled and the former is accepting a payment of $1.5m.

Sealink said in a stock market announcement that BPS proposed and Sealink had accepted the settlement sum as full and final settlement of all claims and counterclaims arising out of the shipbuilding contract signed in 2008.

The shipowner began arbitration proceedings against BPS in December 2012 over the $32.9m contract to build two 7,000 dwt oil or chemical carriers.

Sealink later made a claim of $4.9m against BPS for losses and/or expenses incurred by Sealink pursuant to breaches of the contract.

Sealink said the settlement would have a positive effect on its balance sheet as it would receive and recognise a gain of $1.5m for the disputed amount which had previously been written off.