Latvian Shipping Cancels $200 M Hyundai Order

Latvian Shipping officials said that a deal with Hyundai Heavy Industries for six tankers worth some $200 million has been scrapped, due to political delays on the Latvian side. The company had asked Hyundai to extend for the second time a deadline for signing the contract for six Panamax-type 70,000 dwt tankers, but Hyundai refused, nullifying the deal. The deal was originally planned to be signed by Oct. 22, but Hyundai later extended the deadline to Nov. 5 after the initial request by Latvian Shipping. Latvian Shipping is in the process of being privatized, and all its business decisions have to be approved by the agency's board and council. The privatization agency's council decided on Nov. 12 that the company must find a strategic investor before it can sign the tanker order.