ST Engineering’s US marine subsidiary to pay US$18 million in arbitration claim

ST Engineering display at CommunicAsia conference in Singapore in 2019.ST Engineering display at CommunicAsia conference in Singapore in 2019.

ST Engineering said Wednesday arbitration proceedings between its wholly-owned U.S. marine subsidiary VT Halter Marine and Hornbeck Offshore Services resulted Hornbeck being awarded US$18.03 million, or around S$24.6 million for its claims.

VT Halter Marine was awarded US$2.13 million, or around S$2.9 million for its counterclaims, ST Engineering said in a filing to SGX.

The arbitration proceedings were over disputes from a 2011 vessel construction agreement for VT Halter Marine to design and build certain vessels for Hornbeck, which had claimed damages of around US$48.7 million, largely on the claim the vessels had alleged errors in design and construction, ST Engineering said.

VT Halter Marine had counter-claimed around US$2.4 million against Hornbeck, the filing said.

After the arbitration decision, the net amount payable to Hornbeck is US$15.90 million, or around S$21.7 million, ST Engineering said, adding it has already made provisions for around S$7.5 million. Another S$14.2 million in provisions will be made in the financial statements for the period ended 30 September, the company said.

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