Stolt-Nielsen S.A. Receives Refund For Remaining Six Newbuildings

September 17, 2010 14:50

Stolt-Nielsen S.A. announced that it has received refunds of $211.3 million, plus accrued interest, as part of an early termination agreement with SLS Shipbuilding Co. Ltd. (SLS) of South Korea, reports with reference to Stolt-Nielsen S.A.

The refunds were for progress payments made on six ships ordered in 2006 and 2007 as part of a series of eight parcel tankers to be built by SLS. Due to extensive delays at the yard it was unlikely that the ships would have been delivered within the terms of the shipbuilding contracts. Upon receipt of these refunds the Company has cancelled four of the newbuilding contracts with SLS.

It is anticipated that the final two newbuilding contracts will be cancelled shortly on receipt of outstanding interest of approximately $300,000. As announced on August 17, 2010, the Company earlier received a full refund of $84.5 million, plus accrued interest for two of the other ships in the series, bringing the total refund received for the eight ships to $295.8 million plus accrued interest.

The refunds will be used by the Company to repay loans taken to fund the cancelled newbuildings and for general corporate purposes.

Commenting on the refunds, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of SNSA, said: "We are pleased with the cooperation demonstrated by SLS and the Korean banks allowing for the early termination of the shipbuilding contracts, resulting in the full refund of all progress payments made. We continue to explore alternatives to grow the fleet either through newbuilding orders or acquisitions in the second hand market, but we are in no rush to replace the orders as we believe time is working in our favour due to the present difficult market conditions."

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