A dispute over the failed sale of a supramax bulker has been settled out of court.

According to shipping sources, Spark Ocean Shipping dropped its claim on the 53,500-dwt bulker Archagelos Michael (built 2007), which it had agreed in May to buy for forward delivery at a price considered low by prevailing market levels.

In exchange for dropping the claim, the fledgling Chinese company received more than $5m in compensation.