Yangzijiang Shipbuilding faces potential $4.47m refund from two contracts
The proceedings pertain to 10 vessel contracts amounting to about $1.12b.
Singapore-listed Yangzijiang Shipbuilding (Holdings) Ltd. faces a potential refund claim after a London arbitration tribunal upheld the right of certain customers to seek a $4.47m (USD3.32m) deposit, plus potential interest, under two shipbuilding contracts.
Thee tribunal, however, has yet to make a final decision on the matter and retains the authority to issue further awards.
The arbitration, initiated by multiple claimants in June and September 2022, alleged breaches of 10 shipbuilding contracts and sought approximately $1.12b (US$832.2m) in damages, including claims for loss of bargain and loss of profits. However, the tribunal dismissed the bulk of these claims, only allowing the refund request whilst reserving jurisdiction for further rulings.
Yangzijiang stated that the ruling is not expected to have a material impact on its financial position for the year ending 31 December 2025. The company is monitoring the situation closely and evaluating its next steps with legal advisors.
Shareholders are advised to exercise caution when dealing in Yangzijiang's securities. The company will provide further updates as necessary.
