DFDS has cancelled newbuilding contracts
SHIPPING: DFDS has cancelled the contracts with the German shipyard P+S Werften GmbH, Stralsund, concerning the construction of two ro/ro freight ships ordered in November 2010.
The contracts are cancelled on account of the shipyard’s breach of several terms of the contracts.
Thereby, DFDS’ investment commitment for the newbuildings of around DKK 1.0bn ceases. The payments that have been made to the shipyard are covered by a bank guarantee.
The consequences of the cancellation of the contracts for DFDS’ future tonnage requirements cannot at this stage be determined with a reasonable level of certainty. Likewise, the amount of any one-off costs that may result from the cancellation cannot yet be determined.
The newbuildings were included in DFDS’ expectation for investments for 2012 with an amount of DKK 450m.
Source: DFDS
