Seatrium’s appeal for the injunction from the Singapore court to restrain any payment of money under the US$126.6 million ($162.57 million) standby letter of credit (SBLC) issued has been dismissed by the Singapore Court.
As a recap, Seatrium previously assumed certain potential claims relating to a rig contract where the original contract value was adjusted for cost escalation, and where the validity of the contract value adjustments was subsequently challenged.
Seatrium’s entity, a majority-owned joint venture company, will continue to pursue its claims in arbitration to resolve the contractual dispute and seek recovery of this payment.
An announcement made last November mentioned that provisions have already been made in its accounts for the full amount payable under the SBLC.
Shares in Seatrium closed flat at $2.35 on Sept 12.
