Seaspan says contracts for LNG-powered containership quartet “null and void”

Seaspan, a unit of Atlas Corp, said that contracts for four LNG-powered containerships had become “null and void” after the shipyard did not fulfil certain conditions.

The firm said on May 19 it had entered into agreements for the 7,700-teu ships with a “major shipyard”, but the transaction remained subject to certain closing conditions.

Seaspan planned to charter the vessels under long-term deals worth about $1 billion to a “leading global liner customer”.

“Due to certain conditions in the contracts not being fulfilled by the counterparty, the contracts have become null and void,” Seaspan said in a statement issued on Thursday.

“Seaspan has notified the relevant parties and has reserved its rights to claim against the counterparty in relation to the contracts,” it said.

Seaspan did not provide any additional information.

Brokers and shipbuilding sources previously said that Seaspan had ordered the LNG-powered containerships at South Korea’s K Shipbuilding for charter to Switzerland-based shipping giant MSC.

One shipbuilding source told LNG Prime on Friday that K Shipbuilding failed to secure a bank guarantee for the contracts.

Last year, financially troubled STX Offshore & Shipbuilding rebranded as K Shipbuilding after KH Investment and Uamco took over the management of the shipbuilder from the state-owned Korea Development Bank.

The partners paid about $217 million for the deal.

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