d'Amico International Shipping S.A. announces the starting of an arbitration proceeding

Monday, 10 August 2009

d’Amico International Shipping S.A. (Borsa Italiana: DIS), an international marine transportation company operating in the product tanker market, today announced that Glenda International Shipping Ltd (“GLENDA”), a joint venture company owned equally by d’Amico International Shipping S.A. and the Glencore Group, has commenced arbitration proceedings today against SLS Shipbuilding Co. Ltd of Tongyeong Korea shipyard (“SLS Shipyard”), in connection with the shipbuilding contract for construction of the 51,000 DWT product /chemical tanker newbuilding with hull n° S511.

GLENDA is seeking clarification in the arbitration of its rights of cancellation under the shipbuilding contract, in anticipation of further delays in the readiness for delivery of Hull n° S511, in order to avoid any unnecessary delay in the repayment of instalments and interest by SLS shipyard or (in the absence of such payment) by the refund guarantor, in the event that GLENDA is entitled to cancel the contract in due course for excessive delay, and decides to do so. GLENDA has deemed it necessary to take the step of commencing arbitration following the recent challenge by SLS Shipyard to GLENDA's cancellation of another contract for a previous product / chemical tanker also under construction at SLS Shipyard, Hull n° S510.

Source: d’Amico International Shipping