Gulf Navigation receives full refund of cancelled new building contract and cancels another ship building contract due to excessive delays in delivery
Dubai, 8th June 2010- Gulf Navigation Holding PJSC (DFM: GULFNAV) the leading ship owning and Maritime Services Company in the region, announces that Gulf Mishref Shipping Inc. ("Gulf Mishref"), a wholly owned subsidiary of Gulf Navigation Holding PJSC, has now received its full payment along with interest from SLS Shipbuilding Co. Ltd of Tongyeong, Korea (“SLS”) in respect to its cancellation and termination of the new building contract relating to the 44,000 DWT product/chemical tanker vessel bearing hull n° S488. The payment amounts to approximately $35 million or 130 million Dirhams. The contract was cancelled due to excessive delays in delivery of the vessel.
In addition, Gulf Mizhar Shipping Inc. ("Gulf Mizhar"), another wholly owned subsidiary of Gulf Navigation Holding PJSC, has now given notice to SLS Shipbuilding Co. Ltd of its cancellation and termination of the new building contract relating to the other 44,000 DWT product/chemical tanker vessel bearing hull n° S489. The notice has also been given as a result of excessive delays in delivery of the vessel.
In accordance with the Contract, which was duly executed on 20 March 2006 and novated to Gulf Mizhar on 6 April 2007, Gulf Mizhar has demanded that SLS refund all instalments paid to date in relation to hull no. S489, which amount to US$ 29.4 million plus accrued interest.
Refund of the instalments due to Gulf Mizhar has been guaranteed by The Korea Development Bank, who agreed to refund the instalments in due course.
The refund of the interest bearing instalments will have a significant positive effect on the company’s result, and strengthen its balance sheet.
About Gulf Navigation Holding PJSC Gulf Navigation Holding PJSC and its group companies own and operate crude, PROBOS and chemical tankers. It is an ISO 9001:2000 certified, Dubai-based and United Arab Emirates Holding Entity with operations worldwide. It leads the shipping and marine services industry in the region. It has 11 specialized subsidiaries and owns 15 tankers including new buildings and charters VLCC, Suezmax, Chemical and Product Tankers in addition to 4 crew boats. A total carrying capacity of approximately 1.3 million dwt . It is also the sole agency for a number of global marine manufacturers and the only maritime and shipping company listed on the Dubai Financial Market
For more information Please visit www.gulfnav.com or contact Asma Syaghe on +971 4 4270104 or e-mail firstname.lastname@example.org