DFDS cancels P+S Werften ship orders

Danish ferry and freight shipping operator DFDS has cancelled orders for two vessels from insolvent German shipyard P+S Werften, DFDS said on Thursday, Reuters reports.

P+S Werften, which runs two of Germany's biggest shipyards, filed for insolvency at the end of August.

Cancelling the orders for the roll-on/roll-off vessels, which were placed with P+S Werften's Stralsund yard in November 2010, ends DFDS' commitment for new vessels worth about 1.0 billion Danish crowns ($172.89 million), DFDS said in a statement.

"The payments that have been made to the shipyard are covered by a bank guarantee," DFDS said.

Possible one-off costs that may result from the cancellation cannot yet be determined, DFDS said.