Hong Xiang defaults on five charters

Hong Kong: New York-listed Ship Finance International (SFI) today announced that one of its charterers, Hong Xiang Shipping Holding (Hong Kong) has redelivered four 34,000 dwt handysize dry bulk carriers before final maturity of the charters. And on the same day, Knightbridge Tankers said a 176,000 dwt capesize also on charter to the same owner has been redelivered.

“The agreed charter period was five years from delivery from the shipyard in 2011/2012, and the redelivery follows a period when Hong Xiang has not paid charterhire for the vessels when due. Hong Xiang has sub-chartered the vessels in the market, and we have already collected significant amounts in hire from these subcharters, which have mitigated parts of the financial impact,” SFI said in a release.

“We have a full guarantee from Hong Xiang's parent company Beijing Jianlong Heavy Industry Group Co Ltd, a large Chinese industrial conglomerate, and we will aggressively pursue all available means to recover amounts due to us and claim for damages caused by Hong Xiang's and Jianlong Group's unwillingness to perform on their obligations,” SFI added.

Meanwhile, John Fredriksen-controlled Knightsbridge said Monday the capesize, Golden Zhejiang, had been redelivered from the same owners before final maturity of the charter.

The Golden Zhejiang was on charter for a rate of $32,326 per day net, for a minimum period ending September 7, 2014 and included a two year extension option in Knightsbridge's favour. The redelivery follows a period when Hong Xiang has not paid charterhire for the vessel when due. [30/07/12]

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