General – Litigation
Gulf Island Shipyards has resolved its lawsuit with Hornbeck Offshore Services, relating to the construction of two multi-purpose supply vessels (MPSV).
In connection with the resolution, the court dismissed the lawsuit at the request of the parties to the litigation.
Further, Gulf Island, GIS, Fidelity & Deposit Company of Maryland and Zurich American Insurance Company, the issuer of the performance bonds for the MPSV contracts, entered into a binding term sheet relating to the settlement of Gulf Island and GIS’s obligations under the performance bonds and any indemnity agreements relating to such bonds.
In exchange, Gulf Island and Zurich will enter into a note agreement pursuant to which Gulf Island will pay Zurich $20.0 million, plus interest at a rate of 3.0% per annum, payable in fifteen equal annual instalments commencing on December 31, 2024.
Gulf Island and GIS also agreed to release possession of the MPSVs to Zurich.