Norwegian Golden Ocean terminates sales contract for six new buildings


Norwegian dry-bulk shipping company Golden Ocean Group Ltd (OSL: GOGL) said yesterday it terminated a sales contract with Britannia Bulk Finance Ltd for six Panamax vessels, currently under construction.

Golden Ocean will subsequently book a capital gain of USD53.8m in the third quarter of 2009.

The gain is a result of Golden Ocean reducing its liabilities with a similar amount.

Britannia Bulk Finance’s parent, London-based Britannia Bulk Holdings Inc, was declared bankrupt in November 2008, the company is put in public administration and negotiations have been carried on for the outcome of the sales contract.

The company also said it regards it as improbable that Pipavav Shipyard will be able to deliver at least two of the ships within the cancellation deadline.

Golden Ocean, which is controlled by Norwegian tycoon John Fredriksen, is now in talks with the shipyard about the existing contracts, but will not agree to changes not giving a clearly increased value for the shareholders.


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