Samsung Heavy Industries said Monday that it will lodge an appeal at a British arbitration court over the recent ruling that it has to refund the money received from a Swedish client for a delayed shipbuilding deal.
The London Court of International Arbitration ruled Friday that the South Korean shipbuilder should return the prepaid money and the interest -- worth 463.2 billion won ($408.89 million) to Swedish shipping line company Stena.
The court said that Stena’s cancellation of a deal with Samsung Heavy in 2017 was legitimate, citing the delay in construction.
In June 2013, a deal worth $720 million was signed between the two counterparts to build a semi-submersible drilling rig. The key financial conditions were to receive 30 percent of the amount in advance.
But the shipbuilder contends that they delays to the schedule were largely caused by Stena’s excessive demands for design changes.
When Samsung Heavy requested for an extension of the construction period and additional expenses caused by the changes, Stena decided to cancel the deal.
Both companies took the case to the British court for arbitration.
Also, Samsung Heavy said that it has reflected the financial losses in relation to the legal dispute -- worth 192.5 billion won -- in its 2020 financial statement, with plans to set aside another 287.7 billion won in allowance.
By Bae Hyun-jung (firstname.lastname@example.org