Glenda beats SLS

SLS may yet have to pay back more to Glenda.

SLS Shipbuilding is being forced to hand back over $80m to Glenda International Shipping and its financiers following the cancellation of a trio of products tankers over delivery delays.

A London tribunal has found that the joint venture between d’Amico International Shipping and Glencore rightfully quashed the orders for the 51,000-dwt ships at the South Korean yard.

Arbitration proceedings over the fourth vessel in the series, which Glenda has also canned, have yet to finish, however (Glenda cancels fourth tanker order at SLS Shipbuilding).

The tribunal found that the newbuilding contracts for hulls S510-S512 “were effectively cancelled by Glenda, and that Glenda is entitled to obtain a refund of all the instalments paid”, a statement from d’Amico read.

These refunds total $82.62m plus interest of 3% until payment is made by the yard.

Glenda is to receive $29.16m of the firm amount with the balance of $53.46m going to the bank which financed the deal.

Glenda is a 50/50 joint venture set up between d’Amico and Glencore in 2007 to take control of the four tankers which were ordered for $48.6m a piece.

Marco Fiore, d’Amico’s chief executive, said the company is “extremely satisfied” with the arbitration’s award.

“This will result in additional net financial resources for Glenda of $29.16m, allowing the company to face the current challenging market having a stronger balance sheet position.”

A ruling has yet to be made with regard to hull number S513, but Fiore said the company is “confident in the positive result” of the ongoing arbitration.

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