Another setback for Gulf Nav
Dubai based ship owner Gulf Navigation has suffered another setback following a decision against the company in a case involving a dispute with Chinese firms for building two VLCCs (very large crude carriers).
In a statement to Dubai Financial Market the company said arbitrators in London, which considered the dispute between Gulf Navigation and Zhoushan Jinhaiwan Shipbuilding, Grand China Logistics Holding, and HNA Group, decided against the UAE company and obliged it to pay the second part of the building contract with interest.
Gulf Navigation, which has right to appeal against the decision, says it will take provision and announce it in the 2013 financial year results to be announced soon. It did not disclose the financial loss from the arbitration.
This is the second arbitration loss for Gulf Navigation in as many months. On February 2, 2014, a UK tribunal decided against Gulf Navigation in another dispute involving Nordic American Tankers for delivery of vessel Gulf Scandiac.
After a lengthy and expensive arbitration process under UK jurisdiction, the tribunal has directed Gulf Navigation to pay $10.2 million and interest.
“Gulf Navigation is now seeking advice from an international law firm based in the UAE to find if Gulf Navigation can appeal further on this in the court,” the company said in a statement last month.