Sembcorp Marine referred Wednesday to the announcements it made on Nov. 18 and Nov. 25 regarding the contractual dispute with Marco Polo Drilling (I) Pte Ltd. (MPD).
PPL Shipyard Pte Ltd. (PPLS) has on Dec. 1 served a termination notice on MPD terminating the contract after MPD failed to pay the 2nd disbursement of 10 percent of the contract price ($21.43 million) by Nov. 30 (the 2nd Disbursement).
The 2nd Disbursement was immediately due upon the execution of the contract on Feb. 26, 2014. MPD was initially allowed to pay the 2nd Disbursement by Feb. 11, 2015. However on MPD’s requests, the payment of the 2nd Disbursement was deferred twice, first to no later June 30, 2015 and subsequently to no later Nov. 30, 2015. MPD also agreed to pay interest on the 2nd Disbursement up to the date of payment.
Following the termination of the contract, PPLS demanded that MPD immediately pay the 2nd Disbursement and interest for the month of November 2015 (the November Interest). MPD failed to pay these sums by the stipulated deadline. MPD remains liable to pay the 2nd Disbursement as it became due at the date of execution of the contract on Feb. 26, 2014.
MPD’s obligations under the contract including its obligation to pay the 2nd Disbursement is guaranteed by Marco Polo Marine Ltd. (MPM) under the Parent Company Performance Guarantee (the Guarantee).
On Dec. 1, 2015, PPLS demanded that MPM, as guarantor, perform MPD’s obligations in full under the Contract and pay the 2nd Disbursement and the November Interest. MPM failed to pay these sums by the stipulated deadline.
PPLS has now commenced an action against MPM in the Singapore High Court on Dec. 1, 2015.
All of PPLS’s rights are hereby reserved.
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