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Saturday, December 16, 2017

Scorpio Delays Deliveries, Terminates Charter Contracts

February 28, 2016

Courtesy Scorpio Bulkers

Courtesy Scorpio Bulkers

Scorpio Bulkers, Inc. announced today that it has agreed in principle to delay scheduled vessels deliveries and terminated the time charter contracts for four vessels.

The delivery Delays and Changes in the Newbuilding Contracts was in respect of Certain Vessels Under Construction

The agreements has been reached with shipyards to delay the delivery of two Ultramax vessels and six Kamsarmax vessels under construction by approximately six months each. These vessels, previously expected to be delivered between March 2016 and September 2016 are now expected to be delivered between September 2016 and April 2017. Pursuant to these delays, $40.7 million that was previously expected to be paid to shipyards during 2016 is now expected to be paid in 2017.

The Company also reached an agreement with a shipyard in China to reduce the price to be paid under the final installments of the construction contracts in respect to two Ultramax bulk carriers to be delivered in Q2 2016 by approximately $0.9 million in aggregate.

Termination of Time Charter Contracts

On February 22, 2016, the Company terminated the time charter-in contracts, effective March 19, 2016, of four vessels (one Post-Panamax vessel, one Ultramax vessel, one Supramax vessel and one Handymax vessel) for a one-time payment of $10 million, of which $8 million has been paid as of today's date.
 

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