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WFWAP advises Precious Shipping on ultramax vessel orders

4 May 2016

Watson Farley Williams Asia Practice LLP (“WFWAP”), the Singapore office of International law firm, Watson Farley & Williams has advised and assisted Thai dry-bulk owner operator, Precious Shipping Public Company Limited (“PSL”) with the settlement and cancellations in connection with a series of (originally) ten ultramax vessel orders at Taizhou Sanfu Ship Engineering (“Sanfu”), China.

The transaction involved the termination of shipbuilding contracts for the final three vessels of the series (Hulls SF130131, SF130132 and SF130133), with the instalments paid so far being applied to three others under construction (Hulls SF130126, SF130127 and SF130129). Provision has also been made for unsecured corporate loans to be provided by Sanfu, repayment of which is based on the outcome of ongoing arbitrations in relation to the first two vessels already delivered (Hulls SF130124 and SF130125). The contract price, payment terms and delivery date of the seventh vessel in the series (Hull SF130130) has also been reduced and shipbuilding contract amended, with the instalment paid so far being applied to the third vessel in the series (Hull SF130128).

The WFWAP team were led by partner, Simon Petch, assisted by senior associate Natalie Yap and associate Meryl Montefiore.

Simon Petch, partner at WFWAP, said: “These are challenging times for the dry bulk market, and ship-owners and yards generally. Against this backdrop, we are extremely pleased to have been able to assist our longstanding clients, Precious Shipping, in achieving a mutually-acceptable outcome.”

WFWAP’s dispute-resolution team, led by partner Dan Thompson, continues to assist PSL with the ongoing arbitrations in relation to Hulls SF130124 and SF130125