February 19, 2013, Golden Ocean Group Ltd. (GOGL) announced that the Company in November 2012 exercised its rights to cancel the construction contracts for Golden Excellence and Golden Explorer at Jinhai Heavy Industry Co., Ltd. ("Jinhaiwan").

Further, in December 2012, the Company exercised its rights to cancel the construction contracts for Golden Excalibur and Golden Express, and in January 2013 exercised its right to cancel the construction contract for Golden Nantong.

The yard has referred the matters to arbitration; however the Board is confident the Company has a strong case, it added.

The Company's claim towards the yard is secured by refund guarantees from two of the top four Chinese banks. The Company has in aggregate paid $130.3 million on these five vessels and has drawn $41.6 million under the related loan facility.