Pacific Radiance settles contract dispute with two shipyards

It will receive a refund of up to $14.4m.

Offshore vessels operator Pacific Radiance will be receiving refunds from unfulfilled shipbuilding contracts as it has entered into a settlement agreement with two shipyards involved.

Pacific Radiance, through its wholly owned subsidiary, Pacific Crest Pte. Ltd. (PCPL), issued in June 2016 notices of arbitration against Shanghai Waigaoqiao Shipbuilding and Offshore, and China Shipbuilding Trading for the construction of two platform supply vessels for PCPL.

Three months after, PCPL agreed to patch things up with the shipyards, with a condition calling for a refund to the group in full of payments for the pre-delivery installments worth S$14.3 million (US$10.6 million) and equipment supplied worth S$52K.