Stolt-Nielsen receives refund
Parcel tanker company Stolt-Nielsen SA said Tuesday its Stolt Tankers BV unit has received a full refund of $84.5 million plus accrued interest for the cancellation of two newbuildings.
The payment was made as part of an early termination agreement with SLS Shipbuilding Co. Ltd. (SLS) of South Korea to cancel newbuilding contracts for two 43,000-deadweight-ton stainless steel parcel tankers.
The refund was for progress payments made by Stolt Tankers on the two ships, which were ordered in 2006 as part of a series of eight tankers to be built by SLS.
Due to extensive delays at the yard it was unlikely that these ships would have been delivered within the terms of the shipbuilding contracts, Stolt-Nielsen said.
All of the eight ships are covered by refund guarantees and the company expects to receive full refunds for the six remaining vessels. Stolt Tankers made a total of $296 million in progress payments to SLS towards the eight ships.
Stolt said the refund would be used to repay loans taken to fund the newbuildings and for general corporate purposes.