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Marine Log

June 29, 2006

U.S. Shipping reserves newbuilding slots

U.S. Shipping Partners L.P.--which is rumored to be planning to order products tankers at NASSCO-- has filed a Form 8-K with the SEC that confirms that it has indeed reserved shipbuilding slots. With someone. For something.

Here's what the filing says:

On March 15, 2006, U.S. Shipping Partners LP (the "Partnership") made a $5.0 million deposit to reserve shipyard slots for the building of new vessels, of which $4.6 million was refundable if the Partnership elected by May 26, 2006 not to proceed with the building of the new vessels. On May 26, 2006, the Partnership requested, and obtained, an extension of this deadline through June 23, 2006. As consideration for the extension, the Partnership agreed to make non-refundable up to an additional $0.8 million of the $5.0 million deposit. On June 23, 2006, the Partnership requested, and obtained, a second extension of this deadline through July 30, 2006. As consideration for the second extension, the Partnership agreed to make non-refundable up to an additional $1.5 million of the $5.0 million deposit, bringing the total non-refundable amounts to $2.7 million. If the Partnership elects to proceed with the construction project, the entire $5.0 million deposit will be applied to the construction costs.

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