|
Maroussi, Athens, Greece - September 7, 2016 Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that its Ultramax drybulk vessel, Hull Number DY 161, under construction at Dayang yard and previously scheduled for delivery at the end of August 2016, was cancelled due to excessive construction delays. The Company has demanded the return of its progress payments and other expenses as specified in the newbuilding contract and secured by refund guaranties. The parties have referred the matter to arbitration. In June 2016, the Company cancelled another newbuilding contract for a similar Ultramax vessel, Hull Number DY 160, with the same yard also due to excessive construction delays. Furthermore, as previously announced regarding the Company's remaining newbuilding contract with YJZ yard for the construction of Kamsarmax vessel, Hull Number YZJ 1153, scheduled to be delivered during the first quarter of 2018, the Company has acquired the option until December 31, 2016 to decide whether to build the vessel, or build a vessel of different type, or credit the payment already made as part of the original contract ($2.77m) to acquire a different vessel from the yard at a mutually agreed price, or decide to cancel the shipbuilding contract without any additional cost. Aristides Pittas, Chairman and CEO of Euroseas, commented: "After the cancellation of our newbuilding program with the Dayang yard, we are looking forward to receiving our progress shipbuilding payments of about $18 million for the two Ultramax vessels which we demanded and expect to be refunded. Additionally, the optionality we introduced in our remaining newbuilding contract for a Kamsarmax vessel allows us to be in full control of our capital expenditures. The above newbuilding developments along with a debt refinancing and several loan restructurings that we have completed or agreed and are in the process of completing during 2016 will permit us to use a significant part of the newbuilding contract payments to be refunded for investments in other vessels as part of our continuing effort to take advantage of market opportunities, especially, in the current depressed market environment. " About Euroseas Ltd. Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over more than 135 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2008 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc. which are responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements. Including a vessel agreed to be purchased, M/V AEGEAN EXPRESS, a 1,439 teu 1997-built containership expected to be delivered to the Company by October 2016, the Company has a fleet of 12 vessels, including 3 Panamax drybulk carriers, 1 Handymax drybulk carrier and 1 Kamsarmax drybulk carrier, 2 Intermediate containerships, 3 Handysize containerships, and 2 Feeder containerships. Euroseas 5 drybulk carriers have a total cargo capacity of 351,272 dwt, its 7 containerships have a cargo capacity of 11,525 teu. The Company has also signed a contract for the construction of one Kamsarmax (82,000 dwt) fuel efficient drybulk carrier. Including the Kamsarmax new-building, the total cargo capacity of the Company's drybulk vessels will be 433,272 dwt. Euroseas Ltd. Press Release |
