China’s Jiangsu Sopo Group announced that China Perfect Machinery Industry Co (CPMI) had filed a civil lawsuit against its affiliate Zhenjiang Sopo Shipyard through Shanghai Maritime Court.

CPMI contracted a newbuilding deal with Sopo for two chemical tankers in 2007 however the yard could not deliver the vessels as promised that shipowner O.W. Tankers cancelled a contract regarding the newbuilding pair in 2012, reported by Sino Ship News.

Accordingly, CPMI asked Sopo for CNY 129m ($21.13m) compensation payment including legal fees.

Sopo Group said that both companies had recently settled an agreement to firstly provide CNY 20m to CPMI till October 28 and the rest of payment will be made with CNY 8m a month.