PGS receives payment for cancelled vessel
Monday, Aug 16, 2010
PGS has received 37 million Euro from Factorias Vulcano shipyard in Spain. The amount is related to the arbitration court's ruling in favor of PGS for payments made on the cancelled vessel, NB 533."This payment contributes to the strengthening of our balance sheet, and is an important part of the successful program to further improve our financial position" says CEO Jon Erik Reinhardsen in a comment.
As commented in a release on July 29th, the yard was ordered by the court to pay Arrow the full amount claimed for, EUR 39 563 000, with the addition of interest and full legal costs. The arbitration ruling is final and binding. The amount paid represents the approximately EUR 32 million that was covered by bank guarantees, with the addition of approximately EUR 5 million of interest.
Arrow will pursue its claim for the outstanding payment from the yard, approximately EUR 7.5 million plus interest and legal cost, in accordance with the decision of the arbitrators.
Source: PGS
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