SINGAPORE - Marco Polo Marine has obtained a stay of the entirety of the court proceedings instituted by PPL Shipyard against it for payment under a guarantee.
This was granted by the High Court of Singapore on April 22 in favour of arbitration, Marco Polo Marine said in a filing to the Singapore Exchange on Monday morning (April 25). The company said arbitration proceedings have already commenced.
The Court has also ordered PPL, a subsidiary of Sembcorp Marine, to pay the costs of the application to Marco Polo Marine on an indemnity basis.
The case stems from the termination of a US$214.3 million (S$290.29 million) jack-up rig construction contract between a Marco Polo subsidiary and PPL.
PPL then sued Marco Polo as the guarantor to make immediate payment of the second 10 per cent of the contract price, worth US$21.43 million.
Marco Polo reiterated on Monday that neither the company nor its subsidiary is under any obligation to make the payments claimed by PPL.
It said that under the terms of the guarantee, PPL has no basis to commence legal action against Marco Polo in the Singapore courts.