SOURCE: Golden Ocean Group

August 04, 2009 11:40 ET

GOGL - Agreement with the Administrators of Brittania Bulk Finance Limited

HAMILTON, NORWAY--(Marketwire - August 4, 2009) -

Reference is made to Golden Ocean Group Limited's ("Golden Ocean" or "the Company") press release dated November 9, 2007 informing about the sale of the six Panamax vessels under construction at Pipavav Shipyard in India. Reference is also made to the information given related to this transaction in the Prospectus dated June 29, 2009 released by the Company.

The buyer of the vessels, Brittania Bulk Finance Limited, (ultimately owned by Brittania Bulk Holdings Inc) has since March 13, 2009 been subject to administration under the supervision of the UK courts. Brittania Bulk Holdings Inc went into administration under the Insolvency Act 1986 of England and Wales in November 2008.

The administration of Britannia Bulk Finance Limited created a high uncertainty linked to our counterpart's ability to ultimately take delivery of the six vessels. The fact that the yard experienced delays in their delivery schedule further highlighted the uncertain outcome of the transaction. In this difficult situation Golden Ocean has sought for a solution which gives the company a higher degree of certainty. The discussions with the counterpart have been progressing during the last half year.

The Board of Golden Ocean is pleased to announce that an agreement has been reached with the buyer of the vessels. Through this agreement the parties have mutually accepted to terminate the purchase agreements for all six vessels against certain considerations from the buyer. Golden Ocean will as a direct consequence of this agreement realize a profit of approximately $53.8 million, effectively by reducing the company's liability with a similar amount. The profit will be recorded in the third quarter of 2009.

It currently seems unlikely that Pipavav Shipyard will be able to deliver at least the first two vessels within the cancellation dates. Golden Ocean has entered into discussions with the shipyard regarding an alternation of the existing contracts. However, Golden Ocean will only agree to such alterations subject to such a deal clearly creating additional value for Golden Ocean's shareholders.

Hamilton, Bermuda August 4, 2009

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Copyright © Hugin AS 2009. All rights reserved.

Contact Information

  • Contact Persons:
    Herman Billung: CEO, Golden Ocean Management AS
    +47 22 01 73 41

    Geir Karlsen: CFO, Golden Ocean Management AS
    +47 22 01 73 53