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Pacific Radiance claims $5.55m from Chinese yards over cancelled contracts

Singapore’s Pacific Radiance, through its joint venture firm CA Offshore Investment Inc, has issued notices of arbitration to two Chinese shipyards to claim for $5.55m over their failure to deliver a pair of PSVs.

CA Offshore, 50% owned by Pacific Radiance, issued two notices of arbitration against Shanghai Waigaoqiao Shipbuilding & Offshore Co and China Shipbuilding Trading (Shanghai) Co, both subsidiaries of China State Shipbuilding Corp (CSSC).

The dispute arose from two shipbuilding contracts, both dated 18 December 2013, entered with the Chinese shipyards by Pacific Radiance’s wholly-owned Pacific Crest and novated to CA Offshore for the construction of two PSVs.

“The issue of the notices of arbitration for the arbitrations follows the rescission of the shipbuilding contracts for the failure of the shipyards to deliver the PSVs in accordance with their obligations under the shipbuilding contracts,” Pacific Radiance said.

CA Offshore is claiming, among other things, the refund of the pre-delivery instalments paid to the shipyards for the PSVs, totalling $5.55m, plus interest.

“The arbitrations are currently at their initial stages,” Pacific Radiance stated, adding that the proceedings are not expected to have any impact on the company’s earnings for the current financial year ending 31 December 2016.

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