Singapore High Court Grants Stay of the Action in PPLS-MPD Jackup Spat
Sembcorp Marine referred Tuesday to the announcements it made on Dec. 1, 2015 and April 7, 2016 that its subsidiary PPL Shipyard Pte Ltd. (PPLS) had on Dec. 1, 2015 served a termination notice on Marco Polo Drilling (I) Pte Ltd. (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, 2015 (the 2nd Disbursement).
PPLS commenced an action in the Singapore High Court on Dec. 1, 2015 against the parent company of MPD, Marco Polo Marine Ltd. (MPM), the guarantor, for the amounts due under the Contract. PPLS also served a Notice of Arbitration on April 7, 2016 to commence arbitration proceedings against MPD. PPLS is vigorously pursuing the arbitration proceedings against MPD.
MPM applied to stay the action commenced by PPLS in the Singapore High Court in favor of arbitration (the Stay Application). The Assistant Registrar of the Singapore High Court has on April 22, 2016 granted the Stay Application.
The stay of the action commenced by PPLS in the Singapore High Court is not a dismissal of PPLS’ claim against MPM for the amounts due under the Contract. PPLS will pursue the claim either by way of an appeal against the stay to continue the action in the High Court, or pursue the claim at the arbitration proceedings.
The arbitration proceedings commenced by PPLS against MPD will not be affected by the stay. All of PPLS’ rights are hereby reserved.
Sembcorp Marine will make further announcements as and when necessary.
WHAT DO YOU THINK?
- Singapore's Sembcorp Marine 1Q Profit Slumps 86%, Outlook Subdued (Apr 25)
- Rig Builder Sembcorp Marine 2Q Net Profit Falls 51% (Jul 27)
- Asia Oil, Gas Layoffs Mount as Industry Recovery Stays Elusive (Sep 08)
Company: Marco Polo Marine Ltd. more info
- Singapore's Marco Polo Marine Flags Doubt On Continuing As A Going Concern (Sep 22)
- Singapore's Marco Polo Marine Seeks To Delay Bond Payment (Sep 14)
- Singapore High Court Grants Stay of the Action in PPLS-MPD Jackup Spat (Apr 26)