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]