Gulf Navigation loses lawsuit

Gulf Navigation Holding on Tuesday said that arbitrators in a case involving a dispute with Chinese firms for building two VLCCs (very large crude carriers) have decided against the company.

The company said in a statement to Dubai Financial Market that the 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, 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.

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.