Under the agreement, the bonds must be issued by 20 August and are considered full and final payment for the claim.

The dispute dates back to a six-year bareboat deal from 2004 for NAT's 151,000-dwt Nordic Harrier (built 1997), known as Gulf Scandic at the time.

NAT claimed that when the vessel was redelivered in October 2010, it was in very poor technical condition.

It added that the tanker had not been "technically operated according to sound maintenance practices by the charterer."

NAT had it repaired in the autumn of 2010 and spring of 2011, and made a claim against GulfNav for costs incurred.

In January 2014 an arbitration panel in London ordered GulfNav to pay $10.2m plus costs and interest.

GulfNav, in a statement to the Dubai Financal Markets on Sunday, said that it is currently engaged in negotiations with other creditors to reach similar mutually satisfactory outcomes.