The Board of Directors of COSCO Corporation (Singapore) Limited refers to its announcement on 22 March 2012 in relation to four shipbuilding contracts signed by COSCO (Guangdong) Shipyard Co., Ltd with an American ship owner for the construction of four UT 771 CDL Platform Supply Vessels at a value of over US$105 million in total, that were made effective on 15 March 2012.
The Company announced the completion and delivery of two of the PSVs on 15 December 2014 and 17 February 2015 respectively. The Shipowner and COSCO Guangdong have mutually agreed to extend the delivery dates of the remaining two PSVs, originally scheduled for delivery in early 2014, until 30 June 2016 subject to certain terms and conditions.
To-date, construction of the two PSVs has been significantly completed. Under the agreement, the Shipowner can elect to take delivery of any one or both of the completed PSVs at any time prior to 30 June 2016 (such date may be further extended by mutual agreement of the parties). In the event that the Shipowner elects to take delivery of a PSV, the remaining payment terms under the shipbuilding contract in respect of that PSV shall continue to apply.
In respect of a PSV for which delivery is not taken by the Shipowner, COSCO Guangdong shall refund to the Shipowner the instalments paid on such PSV (being US$5.4 million per PSV) together with interest thereon, and the Shipow ner shall be relieved of the obligation to pay to COSCO Guangdong the remaining payment under the shipbuilding contract in respect of such PSV.