(COVINGTON, La.) — Hornbeck Offshore Services has entered into a final settlement agreement for two multi-purpose support vessels (MPSVs) that had been under construction at Gulf Island Shipyards.
Pursuant to the settlement, Gulf Island was required to dismiss with prejudice all claims it had asserted against Hornbeck on account of Hornbeck’s termination of the vessel construction agreements with Gulf Island over alleged performance issues.
Bond issuer Zurich American Insurance Co. has agreed to take over and complete the construction of the two MPSVs at a completion shipyard to be mutually agreed to by Zurich and Hornbeck, and possession of the vessels will be delivered by Gulf Island to Zurich for that purpose.
Hornbeck’s remaining contractual commitments under the construction agreements that have been taken over by Zurich are approximately $53 million in the aggregate for the two vessels. Zurich will be responsible for all cost of construction in excess of that amount. It is expected that the vessels will be completed in 2025.
“We are very pleased to be able to complete the construction of these two ultra high-spec, Jones Act-qualified MPSVs,” said Todd Hornbeck, the company’s president and chief executive officer. “When delivered, these vessels will be the two largest and, we believe, the most capable MPSVs in the U.S.-flagged Jones Act registry and will enhance our ability to support our oilfield, offshore wind and military customers across a broad spectrum of services.”
– PR Newwire