Hyundai Mipo Dockyard announced that a contract to build a bulk carrier has been cancelled by a European shipowner. Seoul-listed Hyundai Mipo has signed a compensation agreement with the unnamed owner on Monday and agreed to cancel one bulker of a 10-ship order, according to a regulatory filing to the exchange.
The contract value of the bulker has dropped to KRW391.4bn ($366.4m) from KRW435.4bn, a statement said.
Hyundai Mipo said it will be compensated for the termination of the newbuilding contract.
The 10-bulker order was inked on 26 October 2007 for delivery by 30 November 2011. The delivery date has been revised earlier to 30 September 2011.