Gulf Navigation loses lawsuit

According to local dailies, Dubai-based shipping company announced that it has lost an arbitration case in the United Kingdom through a statement. Arbitrators in London have ruled that Gulf Navigation must pay a group of Chinese shipbuilding companies the second part of a contract to build two VLCC grade petroleum tankers. The contract dates back to 2011.

The group of Chinese shipbuilding companies are Zhoushan Jinhaiwan Shipbuilding, Grand China Logistics Holding and HNA Group. Gulf Navigation, however, has right to appeal against the decision. It will take provision and announce it in the 2013 financial year results to be announced soon, the statement said. The company didn't 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.