Dubai: Dubai-based ship owning and maritime services company Gulf Navigation Holding said it is cancelling a contract for a newbuild with SLS Shipbuilding of Korea and has requested for a refund of all installments paid to date along with interest. The move plunges the Korean yard into further trouble, already hit by more cancellations than most.
Gulf Mishref Shipping, a subsidiary of Gulf Navigation Holding yesterday gave notice to SLS Shipbuilding regarding its cancellation and termination of the new building contract of the 44,000 dwt chemical tanker. The notice has been given as a result of excessive delays in the delivery of the vessel.
Per Wistoft, CEO of Gulf Navigation Holding, had earlier told Emirates Business that it planned to either cancel or renegotiate a contract for two ships with SLS shipyards. He said the two 46,000 dwt chemical carriers were originally due for delivery last year. "We are considering the option, as the shipyard is late in delivering and we can contractually cancel the orders," he said.
In a statement to the Dubai bourse yesterday, it said that "in accordance with the contract, which was duly executed on March 20, 2006, and novated to Gulf Mishref on April 6, 2007, Gulf Mishref has demanded that SLS refund all of the installments paid to date in relation to the vessel, which amounts to $29.4 million (Dh107.9m), corresponding to 50 per cent of the contract price of $58.8m, together with accrued interest of about $6m.
According to it, refund of the installments due to Gulf Mishref has been guaranteed by The Korea Development Bank, and "in the event that SLS do not promptly refund the installments, Gulf Mishref will make a demand under the refund guarantee in due course." [11/05/10]
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