China's Yangzijiang Shipbuilding Group announced that the English High Court has dismissed an appeal regarding ongoing arbitration proceedings. The court also refused an application for permission to appeal further, which ensures the existing arbitration awards are upheld.
The legal dispute originated from 10 shipbuilding contracts valued at approximately $900 million. These agreements were entered into during late 2021 but were subsequently terminated by the claimants in March and May 2022.
The group reported that although the claimants had only paid $3.32 million for the orders, they filed claims seeking an aggregate amount of approximately $835 million. These claims included demands for loss of bargain and loss of profits against three wholly-owned subsidiaries of the group.
Following an evaluation in 2022, legal advisers for the group stated there were, "no merits in the claims". The company also noted that the claims were, "highly improbable to succeed" and argued the total quantum was, "incorrectly measured and highly inflated".
On March 3, 2025, the tribunal issued ten partial arbitration awards, which dismissed $832.2 million in claims for loss of bargain and profits.
Yangzijiang reported that the claims were not expected to have a material adverse impact on the financial position of the group.