Company Cash Woes

Families can be the bane of ones life – especially when it comes to money. For that reason it is perhaps possible to feel some sympathy for Korea’s STX Offshore & Shipbuilding. The company has revealed it cancelled four cargoships ordered by its sister company STX Pan Ocean due to unpaid instalments.

STX Pan Ocean reported last week that it had cancelled newbuildings worth $225m. At the time there was no mention of vessels or yards. The cancellations were of a number of boxships, kamsarmax and open-hatch wood-pulp carrier orders.

While the owner has been a little coy with its information, the yard has been more forthcoming. STX O&S told the Korea Stock Exchange that it had axed four wood-pulp ships out of 10 ordered in December 2010, because the shipping company did not meet payments terms. The yard also said the value of the order had been reduced by $195m which prices the vessels at a little below $49m each. However even with cut price deals in place the yard reportedly received only $21.24m from the shipowner.

It seems the old adage of never working with animals and children, should also specify siblings.