Fred. Olsen Energy must pay 60 million to bankrupt

Fred. Olsen EnergyPhoto:Fred. Olsen Energy

The rig company Fred. Olsen Energy is sentenced to pay 60 million to bankrupt estate Bergen Group Hanøytangen, according to an arbitration award.

Bergen Group Hanøytangen (BGH) sued the Fred. Olsen Energy (FOE) of protruding bills of 180 million after the BGH were supposed to perform classification, repairs and upgrades of Borgland Dolphin rig.
There was several disputes related to work, and FOE went to litigate against BGH, wrote Sysla.
The case went to the arbitration court in Oslo last December. The verdict was that the BOE must pay NOK 54 million plus interest, a total of 60 million to bankrupt estate BGH.
BGH filed for bankruptcy on 25 September 2015. In a stock exchange announcement the company wrote that over time they had experienced a “strained liquidity situation due to lack of payment of the final bill from a rig project Borgland Dolphin which was completed in Q1 2015.”
Neither party was upheld by judges and court costs, which probably will be between 12 and 14 million, to be shared between the two parties.
– We had expected a better outcome, but this is mainly within the framework of the provisions we have made in the financial statements and within what we saw as a possible outcome, says CFO Hjalmar Krogseth Moe FOE.
Source: NTB scanpix / Norway Today