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Flex LNG confident $4bn deal with Samsung Heavy will still go ahead

Flex LNG confident $4bn deal with Samsung Heavy will still go ahead

Oslo: Flex LNG is adamant that Samsung Heavy Industries will not cancel a series of high-priced newbuildings despite much speculation on the lack of funding for the project. ??The Oslo-listed company said it has been given assurances by the South Korean yard that it has no intention cancelling a quartet of LNG floating production storage and offloading units. The ships have a combined order value of some $4bn. ??The newbuildings, signed for between 2007 and 2009, have looked to be in jeopardy as tight credit markets hampered Flex's efforts to raise cash. ??"The company acknowledges the current challenging fund raising environment it faces and the impact that this has on the ability of the group to finance its funding requirement," a statement by the owner on the Oslo bourse read yesterday. ??"Following the raising of $10m of additional capital as part of the listing on Oslo Axess on 30 October 2009, the company expects to have sufficient financial resources to enable it to continue trading and to meet its payment obligations until the next hull payments are due to be made to Samsung in November 2010." ??Flex failed to give a resumption notice for construction of the vessels by 31 May handing Samsung the contractual right to axe the orders as well as another contract.  [27/08/10]

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