STX Offshore & Shipbuilding made a regulatory filing on October 10 that its newbuilding contract, ordered by compatriot shipowner on June 30 2008, to supply a pair of product carrier has been cancelled.
As the Korean shipowner closed down its business and did not fulfill the contract, the order, totalling KRW 110.2bn ($98.9m) has officially been cancelled as of October 9.
STX revealed that as it has not been paid the second installment after receipt of $10.56m of down payment, it has frozen ship production cost.
Meanwhile, the owner is said to be Sekwang Shipping.