DFDS pulls plug on P+S Werften newbuilds

DFDS-CancellationSEPTEMBER 13, 2012 — Danish operator DFDS today announced that it has cancelled its contracts with German shipyard P+S Werften GmbH, Stralsund, for the construction of two RO/FRO freight ships ordered in November 2010.

The shipbuilder filed for insolvency August 29 (see earlier story) and the cancellations add to the problems facing liquidator Berthold Brinkmann as he tries to put together a restructuring package.

DFDS said in a statement today:

"The contracts are cancelled on account of the shipyard's breach of several terms of the contracts.

"Thereby, DFDS' investment commitment for the newbuildings of around DKK 1.0 bn ceases. The payments that have been made to the shipyard are covered by a bank guarantee.

"The consequences of the cancellation of the contracts for DFDS' future tonnage requirements cannot at this stage be determined with a reasonable level of certainty. Likewise, the amount of any one-off costs that may result from the cancellation cannot yet be determined. The newbuildings were included in DFDS' expectation for investments for 2012 with an amount of DKK 450 m."

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