American owner defers delivery of two PSVs

MAY 28, 2015 — China's COSCO (Guangdong) Shipyard Co., Ltd. has agreed to defer delivery of two of four UT 771 CDL Platform Supply Vessels ordered by an undisclosed "American shipowner" in March 2012. Total value of the four vessels under the contract was over $105 million. The first two were delivered on December 15, 2014 and February 17, 2015 respectively.

The shipowner and the shipbuilder have mutually agreed to extend the delivery dates of the remaining two PSVs, originally scheduled for delivery in early 2014, until June 30, 2016.
Construction has been significantly completed and the owner can elect to take delivery of either one or both of the completed PSVs at any time prior to June, 30 2016. The date may be further extended by mutual agreement of the parties.

In the event that the shipowner elects to take delivery of a PSV, the remaining payment terms under the shipbuilding contract in respect of that PSV will continue to apply.

"In respect of a PSV for which delivery is not taken by the shipowner, COSCO Guangdong shall refund to the shipowner the installments paid on such PSV (being US$5.4 million per PSV) together with interest thereon, and the shipowner shall be relieved of the obligation to pay to COSCO Guangdong the remaining payment under the shipbuilding contract in respect of such PSV," says a COSCO stock exchange announcement.

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