Brodosplit wins arbitraton dispute with Russian shipowner

The Brodosplit shipyard said on Wednesday it had won an arbitration dispute with the Russian company Premier Cruises at the London Maritime Arbitrators Association over non-payment for a river cruise ship and that it expected a temporary ban on the management of its business accounts to be lifted.

The arbitration process was completed in May and Brodosplit yesterday received the decision which confirms that its management made the right decision in cancelling the contract with the Russian shipowner over its failure to comply with the contract, the Split-based dock said in a press release, adding that Premier Cruises was also ordered to pay arrears to Brodosplit with interest and arbitration costs.

The decision will also lift the temporary ban on the management of Brodosplit's business accounts, the press release added.

Brodosplit Board chairman Darko Pappo told Hina earlier the ban was imposed at the request of Premier Cruises, and that Brodosplit was forced cancelled the contract because the Russian client allegedly ran into problems and would not take over the cruise ship. Premier Cruises made a HRK 5 million downpayment for the ship, while Brodosplit financed construction with HRK 15 million.

Construction on the ship, currently owned by Brodosplit, will continue. The liner is 105 metres long and 16 m wide, has four decks and will accommodate 160 passengers in 82 luxury cabins.

(EUR 1 = HRK 7.5)

Last update: Wed, 29/06/2016 - 15:54
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