Shipping company Solvang, which specializes in LPG and petrochemical transport, revealed in a brief to the Oslo Stock Exchange that the company wants to dissolve a joint venture with French Evergas, concerning the company Evergas Solvang KS, which is based in Copenhagen and operates 12 ethylene tankers, with an additional six newbuildings.
Because of "a deadlock (...) under the terms of the Joint Venture Agreement [that] the parties have not been able to resolve," Solvang wants to dissolve the joint venture, according to the statement. But it might not be as easy as the company wants it to be, as Evergas strongly disagrees with the decision, says the company in a statement:
"It is Evergas’ firm opinion that Solvang ASA is not entitled to request dissolution of the Joint Venture and that Solvang ASA is breaching its obligations under the Joint Venture Agreement," writes the shipping company, which objects to the dissolvement.
As a result, Evergas filed two separate arbitration and injunction proceedings against Solvang, in April and May, in an effort to prevent the dissolvement.
"These legal proceedings will continue. Evergas will continue to work in the best interest of the Evergas Solvang Ethylene Joint Venture, its customers and its employees and is aiming to prevent Solvang ASA’s actions," writes Evergas.
ShippingWatch has spoken to Evergas CEO Martin Ackerman, who refers to the statement. And Managing Director of Evergas Solvang, Tor H. Augdal, also declined to comment.
In the brief to the stock exchange, Solvang states that the company intends to comply with all its existing third party contracts.