STX France cancels Libya cruise ship contract

STX France SA, a 66.66 percent owned subsidiary of STX Europe AS, has rescinded the contract with GNMTC (General National Maritime Transport Company) – the state owned Libyan shipping company – for the construction of a 140,000 GT cruise vessel for delivery end-2012.  SRX Europe says the reason for the rescission is the default of payment from GNMTC.

STX France says it is is confident that it will be able to find a new buyer for the vessel. Due to insurance cover for such an incident, the rescission is expected to have limited impact on the financial results of STX France.

June 22, 2011