Dockwise Ltd
oslo : DOCK

July 19, 2012 07:27 ET

Dockwise Ltd : Fairstar confirms commitment to third new build vessel

BREDA, NORWAY--(Marketwire - Jul 19, 2012) - Dockwise Ltd notifies the market of a Fairstar release as follows:

Fairstar Heavy Transport N.V. ("Fairstar") confirms that on 3 May 2011 Fairstar had entered into a Shipbuilding Contract with a face value of USD 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.

Dockwise shares are listed on the Oslo Stock Exchange under ticker DOCK-OS and on NYSE Euronext Amsterdam under ticker DOCKW-AE. Shares of Dockwise subsidiary Fairstar Heavy Transport N.V. are listed on the Oslo Stock Exchange under ticker FAIR-OS

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Dockwise Ltd via Thomson Reuters ONE

[HUG#1627935]

Contact Information

  • For further information please contact:

    Fons van Lith
    Email: Email Contact
    Tel: +31 (0)6 51 314 952
    or +31 (0)76 5484116