Binned: Norwegian ship owner GC Rieber cancels $33 million new vessel order.
GC Rieber cancels $33m vessel order
Singapore listed Otto Marine said its joint venture with GC Rieber has cancelled a newbuild order worth €23.5 million ($33.1 million) with its shipyard.
Otto Marine said it has received €4.7 million in milestone payments and a contract deposit for the newbuild.
The vessel was ordered in May last year by Polar Marine I, a 51:49 joint venture between GC Reiber and Otto Marine.
GC Rieber yesterday issued a separate statement about the cancellation.
“The cancellation, which has been put forward by Polar Marine I in accordance with the contractual terms, is disputed.
“Polar Marine I is confident that the contract is rightfully cancelled”
The interim payment is covered by a refund guarantee and the cancellation will have no negative financial impact on the company, the Norwegian ship owner claimed.
Prior to the cancellation, Polar Marine I has four MT design multi-functional special purpose vessels on order with Otto Marine and scheduled for staggered deliveries in 2009 and 2010. The first two units were intended to go on charter with GC Rieber’s subsidiary, Technocean.