Prosafe Extends Standstill Agreement with Cosco

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(Image Courtesy: gCaptain)

The standstill agreement between Prosafe and COSCO related to Safe Nova and Safe Vega has recently been extended until 30 June 2018. Prosafe continues to negotiate with COSCO and related parties for a workable commercial solution for Safe Nova and Safe Vega.

If no agreement is reached, Prosafe has the right to claim cancellation of the newbuild contracts due to delay, and claim repayment of the instalments paid including interest of approximately USD 60 million in total, secured by a refund guarantee from Bank of China.

“Prosafe remains focussed on its fleet high-grading strategy and continues to work with COSCO Shipping (Qidong) Offshore Co. Ltd (COSCO) to find a comprehensive commercial solution for the three Prosafe vessels that currently reside in COSCO’s Qidong shipyard in China,” the company said.

“The Safe Eurus is in a preserved, strategic stacking mode and negotiations continue with COSCO to find a workable commercial solution,” a press note released by Prosafe today stated.

Sea News, June 14