Concordia Settles: $9.25m for Grounding

Posted by Greg Trauthwein
Friday, May 13, 2016

Concordia Maritime entered into a settlement agreement regarding a dispute associated with Stena Primorsk’s grounding in the Hudson River in December 2012. According to the settlement agreement, Concordia Maritime will pay $9.25 million to the counterparty.

In July 2013, the company owning the vessel received a claim regarding the damage the counterparty believes the company has caused them in connection with the company’s decision to stop operating Stena Primorsk in the Hudson River after the vessel’s grounding in the shipping channel in December 2012. The counterparty initial claim amounted to approximately $21 million, which was subsequently adjusted to $23 million, and the counterparty requested the matter be settled by arbitration in the United States, in accordance with the terms of the agreement. In connection with the arbitration proceedings, Concordia Maritime asserted counterclaims in the amount of $6 million.

A discovery phase, in which both parties’ standpoints and demands were examined carefully, was completed in the third quarter of 2015. After further discussions, the parties have now entered into a settlement agreement according to which Concordia Maritime will pay $9.25 million to the counterparty. Payment will be made on Friday 13 May and will constitute a final settlement between the parties with respect to the dispute.
Categories: Finance Legal Tankers

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