Following an announcement two years ago from BAE Systems saying that the government of Trinidad and Tobago (GORTT) wished to cancel an offshore patrol vessels (OPVs) contract, the defence company has finally said that the two parties have reached a settlement.
On September 21st 2010, GORTT said that it wanted to drop the contract, entered into in April 2007, which would see BAE's subsidiary VT Shipbuilding provide three OPVs.
At the time, BAE was ready to deliver the first ship, but the programme had suffered from delays and cost overruns, leading the group to take a £100m charge to terminate the contract.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The three OPVs were subsequently sold to the Brazilian Navy under a contract signed in December 2011 and the first ship was handed over to the Brazilian Navy in June this year, BAE announced on Wednesday.
BAE has now reached agreement on a settlement with GORTT, saying: "The settlement with GORTT is at an amount consistent with provisions held."
-
Bitcoin hits new heights - is now a good time to invest?The value of Bitcoin has surged to a 20-month high. Why is Bitcoin rising and is now a good time to invest?
-
Gold hits record high - could it soar higher next year?
The yellow metal has hit a new all-time high. We look at market expectations for 2024, whether investors should sell and take profits, and how to invest in gold.
