Petronav Ltd and Palumbo Shipyards close to reaching out-of-court settlement

Petronav Ltd and Palumbo Shipyards are expected to finalise an agreement drawing to a conclusion the civil suits both companies filed against each other. 

Claiming Palumbo Malta Shipyards Ltd had stopped Petronav Ltd from taking out its machinery from the shipyard, the latter had filed a warrant of prohibitory injunction against Palumbo Malta.

The warrant, which was temporarily upheld, demanded that Palumbo does not prevent the company from retrieving its machinery from the shipyard. The company wanted to terminate its contract with Palumbo after the shipyard fell back on payments. Since July 2010, Palumbo always paid on time, however the shipyard had around 1.6million in outstanding payments with Petronav Ltd.

However, this morning, Petronav's lawyer Kenneth Grima informed Madam Justice Lorraine Schembri Orland that both companies were close to signing an agreement both sides agreed about.

The two lawyers asked for a postponement of the sitting in order for the parties to have enough time to seal the deal.

Madam Justice Lorraine Schembri Orland upheld the request and postponed the sitting for 30 January.