PPL Shipyard Pte Ltd (PPLS) has on 1 December 2015 served a termination notice on Marco Polo Drilling (I) Pte Ltd (“MPD”) terminating the contract after MPD failed to pay the 2nd disbursement of 10% of the contract price (US$21.43 million) by 30 November 2015 (the “2nd Disbursement”).
The 2nd Disbursement was immediately due upon the execution of the contract on 26 February 2014. MPD was initially allowed to pay the 2nd Disbursement by 11 February 2015. However on MPD’s requests, the payment of the 2nd Disbursement was deferred twice, first to no later 30 June 2015 and subsequently to no later 30 November 2015. MPD also agreed to pay interest on the 2nd Disbursement up to the date of payment.