Another Stolt tanker scrubbed off SLS's orderbook

Stolt Tankers B.V., a subsidiary of Stolt-Nielsen S.A. (Oslo Børs: SNI), today announced that it has cancelled a contract with SLS Shipbuilding Co. Ltd. of South Korea for the construction of hull #475, a 44,000 dwt coated parcel tanker, the third in a series of four ships, citing extended delivery delays. The ship was originally scheduled for delivery in November 2008. All progress payments to date are covered by bank refund guarantees.
This cancellation follows the cancellation of hull #473, the first ship in the series from SLS Shipyard Co. Ltd., in March of this year, and hull #474 in June. The yard has challenged our right to cancel the contracts for hulls #473 and #474, and the parties are now in arbitration. The fourth ship in the series, hull #476, is also experiencing substantial construction delays, Stolt said in a statement.