Gener8 Maritime Cuts Contract Price for New VLCC

Illustration; Image Courtesy: Gener8 Maritime

US-based Gener8 Maritime has reached an agreement with Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) to cut the price for the company’s final VLCC newbuilding.

Under the amendment, entered into on September 26, the parties agreed a USD 19.3 million reduction in the contract price, including USD 5.4 million in liquidated damages related to the late delivery of the ship.

As a result, the contract price has been reduced from USD 96.4 million to USD 77.1 million, and the final installment due from the company upon delivery of the 300,000 dwt very large crude carrier by the builder on October 9, 2017 will be reduced from USD 48.2 million to USD 29 million.

The shipbuilder is now obliged to deliver the VLCC, to be named Gener8 Nestor, to Gener8 Maritime on October 9, 2017.

Furthermore, the ship builder is obligated to pay USD 30,000 per day for the period from October 9, 2017 to the date of actual completion of the outstanding works. If the outstanding works are not completed on or before October 23, the company has the option to complete the works on its own or using its own subcontractors at the builder’s cost and liquidated damages will continue to be payable at the rate of USD 30,000 per day.

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