Malaysia-listed offshore services supplier Icon Offshore has cancelled its shipbuilding contract with Denmark-based Danish Yachts and is seeking a refund of around DKK21.35 million (USD3.25 million).
The contract was terminated by Icon Offshore’s joint-venture company Icon-FOB Holdings (Icon-FOB) because of technical non-conformity to specifications agreed in the contract with Danish Yachts.
Icon Offshore deputy CEO Hassan Ali said the contract cancellation is inevitable as the company has set up stringent acceptance tests for newbuildings before taking delivery.
“We will not accept any vessel that does not meet the contractual technical specifications,” explained Hassan in the company’s filing to Bursa Malaysia.
According to Icon Offshore’s filing, Icon-FOB and Danish Yachts have agreed to mutually terminate the contract and make full refund of the payments made to date.
Of the DKK21.35 million to be reimbursed, Icon Fleet, which owns 51% in Icon-FOB, would be compensated with DKK10.89 million.