9 Oct. 2017
Norwegian shipowner Boa IMR has been successful in its arbitration against the compatriot shipyard group, Noryards Fosen, related to cancellation of a vessel construction order back in 2015.
In an Oslo Stock Exchange filing on Friday, Boa IMR, a subsidiary of the Norwegian offshore services provider Boa Offshore, said it was notified on October 5 of a successful arbitration award from the Oslo tribunal after the hearing held in the beginning of September 2017.
To remind, Boa placed the order for an Inspection Maintenance and Repair (IMR) vessel with Noryards in March 2015 with the delivery date set for two years later. Total contract value was in the range of NOK 700 million. The vessel, with main dimensions of 108 x 24 meters, was designed by Noryards in cooperation with Boa.
However, come September 2015 and Boa cancelled the shipbuilding contract with Noryards Fosen and claimed repayment of advance payments including interest according to the contract.
Due to a financial strain put on Noryards Fosen by Boa’s order cancellation, the shipbuilder was forced to petition for bankruptcy in October 2015.
The arbitration process was related to the refund guarantee claim of advance payments, Boa explained on Friday.
According to Boa’s statement, the unanimous award determines that Fevamotinico S.á.r.l. will pay Boa IMR NOK 107.5 million ($13.4M) with the addition of 7% interest calculated on NOK 104 million ($12.96M) from October 20, 2015 until the settlement date, to pay Boa IMR’s litigation costs and to pay the arbitration tribunal’s fees and costs. Read More