STX PO deal pulped

STX Pan Ocean has called a premature halt to a contract of affreightment (COA) after cancelling newbuildings ordered to service the deal.
STX Pan Ocean: Cutting back.

STX Pan Ocean: Cutting back.

The Korean shipowner has earned $207m of the $246m contract to transport woodpulp for Brazil’s Fibria Celulose.

However the company has called time on the deal as it continues its rehabilitation process, it said in a regulatory filing.

The three-year contract, signed in October 2011, was a precursor to a huge $5bn deal with Fibria Celulose to ship Woodpulp over 25 years from the final quarter of last year.   

STX Pan Ocean ordered 20 open hatch newbuildings at STX Offshore & Shipbuilding in late 2010 to service the contract.

Those vessels plus six kamsarmaxes were ordered at a cost of $1bn however the company recently chopped the programme by $525m as part of its restructuring drive.

Five of the 57,000-dwt open hatch ships had already been delivered while 15 were due for delivery from STX in Jinhae and Dalian next year, according to Clarksons.   

STX Pan Ocean entered receivership in June but clinched a deal with creditors last month.

Last week the company made a surprise return to the newbuilding arena with an order for two capesize vessels at Hanjin Heavy Industries.

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