CIMC declares another win in battle against Brazil’s Schahin

China International Marine Containers has declared another victory in its legal battle against Brazilian-based Schahin Group over US$208 million in arrears for the construction of two oil-drilling rigs three years ago.

CIMC Raffles, a subsidiary of Hong Kong- and Shenzhen-dual listed CIMC, won two interim awards from the London Arbitration Tribunal that enabled the company to collect US$105 million in principals, interest and legal expenses, CIMC said in a stock exchange filing.

The latest rulings followed two early ones made by arbitration tribunals in New York and London, both in favour of CIMC, which is also the world’s largest container manufacturer.

A CIMC spokesman told the South China Morning Post that the case was “not over” and the company is still awaiting a final award for remaining claims.

“In our original claims there is around US$48 million in principals not granted. We are waiting for a final award. The proceedings so far have been progressing as we expected.”

Sao Paulo-based Schahin Group in 2006 contracted CIMC to build two semi-submersible drilling rigs for use by Brazilian energy giant Petrobras. The rigs were delivered in November 2010 and April 2011. Schahin refused to pay outstanding balances and advances to CIMC, arguing that the construction had fallen behind schedule with cost overruns and that the original guarantee was therefore rendered invalid, according to a case report by London-based law firm Allen & Overy.