Fairstar Confirms Commitment to Third New Ship

(MarineLink)
Thursday, July 19, 2012

Fairstar Heavy Transport N.V. (Fairstar) confirms that on 3 May 2011 Fairstar had entered into a Shipbuilding Contract with a face value of $110 million with China Shipbuilding Trading Company Limited (CSTC) and Guangzhou Shipyard International Company Limited ("GSI") concerning the acquisition and building of a fifth vessel (MV Fathom), identical to the two earlier new builds MV Forte and MV Finesse.

This Shipbuilding Contract was amended by a Memorandum of Agreement to the Shipbuilding Contract on 23 May 2012 to the extent that Fairstar was obliged to make payment of the First and Second Instalments under the Shipbuilding Contract by 20 June 2012. Any failure to do so would constitute an event of default under the Shipbuilding Contract and entitle CSTC and GSI to terminate the Shipbuilding Contract. In the event of such termination, Fairstar will be obliged to pay a Termination Fee in the amount of USD 37.5 million. Further, Fairstar in that case shall forfeit the USD 2 million Down Payment already paid pursuant to the Shipbuilding Contract. Fairstair failed to pay the sums due by 20 June 2012.

Until now, there is no indication that the Shipbuilding Contract has been terminated. Fairstar and CSTC and GSI have agreed to meet with Fairstar management shortly and discuss the present situation. Meanwhile, Fairstar and Dockwise are looking at scenarios, involving amongst others the earlier announced intended conversion of the Black Marlin which, when viewed from a combined fleet perspective, will allow for optimization in CAPEX commitments and CAPEX planning without a need for additional equity for the foreseeable future.
 

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

W&O, LESER Partner to Deliver Safety Relief Valves

W&O, a global supplier to the marine and upstream oil and gas markets for pipe, valves and fittings, valve automation and engineered solutions, has partnered with

Fednav Celebrates Anniversary Trio in Cleveland

Fednav Limited held a reception on board one of its vessels, the Federal Mayumi, at the Port of Cleveland yesterday to celebrate a trio of anniversaries: the 70th

Karl Senner Inks Distribution Deal with Electronic Power Design

Karl Senner, LLC (KS) has reached a new strategic representation agreement with Electronic Power Design (EPD). Karl Senner, LLC now represents EPD in the United States marine and offshore Markets.

Contracts

Diana Extends Containership Time Charters

Diana Containerships Inc. announced direct continuation of time charter agreements for m/v Cap Domingo and m/v Cap Doukato   Diana Containerships Inc., a global

BMT Supports Samalaju Port Development

BMT subsidiaries in the Asia-Pacific region have been awarded a contract to provide design expertise for an advanced bulk-material handling system for the emerging port of Samalaju in East Malaysia.

EU: Ships Will Measure CO2 Emissions

Shippers to begin monitoring from 2018; Environmental groups say law is weak, shippers favorable. The shipping sector will for the first time have to monitor

Shipbuilding

MacGregor Deck Equipment for Intership's Eco-bulkers

MacGregor, part of Cargotec, has secured a deck equipment contract from New Times Shipyard in China for Intership Navigation Co Ltd.'s three new 36,500 dwt laker-class bulk carriers.

Seacor Takes Delivery of 10,800 HP Crewboat

Seacor Marine is building ever larger and more powerful mono-hull crew/supply boats. The first of these to be delivered is the 202x34-foot Alex F. McCall with some very impressive statistics.

Choosing the Best Financing Proposal

It isn’t always about the rate. In a robust boatbuilding market – like the one we see now – even the most successful, financially stable operators need to borrow.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1528 sec (7 req/sec)