Boa looking to enforce payment for scrapped vessel deal

Norwegian shipowner Boa IMR is starting enforcement procedure to get its money back after the cancellation of a shipbuilding contract with the compatriot shipbuilder Noryards Fosen in 2015. 

Earlier this month, Boa was successful in its arbitration at the Oslo tribunal related to the refund guarantee claim of advance payments for a vessel order made at Noryards Fosen, which was cancelled in September 2015.

The unanimous award determined that Fevamotinico S.á.r.l. would pay Boa IMR NOK 107.5 million with the addition of 7 % interest calculated on NOK 104 million 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. The payment term for the payments to Boa IMR was 14 days from the date when the notice was given.

According to Boa’s Oslo Stock Exchange filing on Friday, now that the deadline has passed and Fevamotinico S.á.r.l. still has not paid, the enforcement procedure will be initiated in Luxembourg.

Sysla, a Norwegian oil industry news source, reported that the Ukrainian oligarch Kostjantyn Zjevag was behind Fevomotinico.

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 for the vessel, with main dimensions of 108 x 24 meters, was in the range of NOK 700 million. The vessel 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.

Offshore Energy Today Staff

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Posted on October 20, 2017 with tags .

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