SINGAPORE - Sembcorp Marine said its subsidiary, PPL Shipyard Pte Ltd, will pursue its claim against Marco Polo Marine, after Singapore's High Court granted the latter a stay of proceedings.
The legal tussle between the two companies 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 announced on Monday (April 25) it had obtained a stay of the entirety of the court proceedings in favour of arbitration.
In a filing to the Singapore Exchange on Tuesday (April 26), SembMarine said the stay of proceedings obtained by PPL is not a dismissal of PPL's claim against Marco Polo.
It said PPL "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."
SembMarine added that its own arbitration proceedings against Marco Polo Drilling, a unit of Marco Polo, will not be affected by the stay.
The company said it will make further announcements as and when necessary.