Deep Sea Supply cancels newbuilding

Deep Sea Supply (DSS) has cancelled the contract with Jaya Shipbuilding and Engineering Pte. Ltd. (“Jaya”) pursuant to which DSS was to take delivery of Hull No 875 to be named “Sea Hawk 1”. The cancellation is based on substantial delays beyond the revised, contractual delivery date. DSS has made pre-delivery instalment payments to Jaya in the amount of $3,6 million, which are to be refunded in full.

DSS had not entered into any employment contract in contemplation of contractual delivery, and, therefore, suffered no exposure to any non-performance claim.

The latest information available suggests that Hull No. 878 will be delivered by Jaya in April 2009 as scheduled.