South Korea's Daesun Shipbuilding & Engineering made a public announcement on Jan. 29th that it had cancelled a bulker newbuilding contract with a European shipowner Bright Navigation.

Daesun had signed a KRW 39bn (USD 33.35m) contract of building bulkers with the shipowner in May, 2008.

"The newbuilding contract was cancelled due to financial problems of the shipowner. The owner made its first and second prepayments in May and June 2008, 5% each of the total contract amount. However, we did not get paid the third installment after the financial crisis," said Daesun.

Daesun also mentioned in its announcement that one of the five bulkers ordered from shipowners including Bright Navigation in April last year was cancelled and delivery of the rest four bulkers was delayed.

Additionally, company said a bulker order from a domestic shipowner signed in Apr. 2008 is being deferred resulting from the shipowner's failing to pay the installments.

"The shipowner could not make the third payment under financial difficulties following the financial crisis, while still looking for measures to raise fund for the newbuilding," explained Daesun.

Source: Asiasis

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