Pacific Radiance (Pac Rad) has taken legal action against two Chinese shipyards over two newbuilding contracts.
The Singapore-listed company has issued arbitration notices against Shanghai Waigaoqiao Shipbuilding & Offshore and China Shipbuilding Trading.
Pac Rad explained this move follows the rescission of the contracts for two platform supply vessels (PSVs) “for the failure of the shipyards to deliver the PSVs in accordance with their obligations under the shipbuilding contracts.”
The company ordered the ships in 2013 as part of its then fleet expansion project and they were slated for delivery in the fourth quarter of 2015.
Its subsidiary CA Offshore Investment is asking the refund of pre-delivery instalments of $5.5m paid to the yards.
Arbitration proceedings are currently at their initial stages, Pac Rad added.
