Boustead Penang Shipyard settled commercial dispute with Sealink International over delayed delivery and violations of shipbuilding contract for two 7,000 DWT oil tankers. According to the out-court settlement, the shipbuilding company Boustead Heavy Industries proposed to pay 1.5 million USD, as full and final settlement of all claims. The payment must be done within 14 days from the execution of the agreement and will be free of all bank and remittance charges. The settled amount will be accounted into the cash flows of the shipping company and will be used for operational expenses.
The both companies entered into arbitration in December 2012, due to delay of the contract signed in 2008 for the two tankers. Sealink International claimed a refund of 4.93 million USD from Boustead Penang Shipyard over delay and violations in terms of the contract.
“The settlement would be positive for the company as it would receive and recognise a gain of 1.5 million USD”, said the official statement of Sealink. “The disputed amounts involved with BPS had previously been written off in the books of the company”, adds the company.
Boustead Heavy Industries owns shipbuilding facilities in Malaysia with yards located in Jerejak (Boustead Penang Shipyard), Lumut (Boustead Naval Shipyard) and Langkawi (Boustead Langkawi Shipyard). Boustead Heavy Industries caters to naval and commercial vessels, as well as private boats with a capability to build vessels of up to 120.00 m in length and 10,000 DWT in tonnage.