Bermuda: SFL Announces Termination of Charters for Four Bulk Carriers

Ship Finance International Limited, today announced that one of its charterers, Hong Xiang Shipping Holding (Hong Kong) Co Limited (“Hong Xiang”), has redelivered four 34,000 dwt Handysize drybulk carriers before final maturity of the charters.

The agreed charter period was five years from delivery from the shipyard in 2011/2012, and the redelivery follows a period when Hong Xiang has not paid charterhire for the vessels when due. Hong Xiang has sub-chartered the vessels in the market, and we have already collected significant amounts in hire from these subcharters, which have mitigated parts of the financial impact.

“We have a full guarantee from Hong Xiang’s parent company Beijing Jianlong Heavy Industry Group Co. Ltd. (“Jianlong Group”), a large Chinese industrial conglomerate, and we will aggressively pursue all available means to recover amounts due to us and claim for damages caused by Hong Xiang’s and Jianlong Group’s unwillingness to perform on their obligations.” Company said

The charters to Hong Xiang represented approximately 1.5% of the Company’s aggregate charter backlog, and the Company intends to mitigate its losses by re-chartering the vessels in the short- to medium-term charter market initially.

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Source: SFL, July 30, 2012