Ocean Yield has terminated a bareboat charter with EMAS Chiyoda Subsea (ECS) for the Lewek Connector vessel, following a request by ECS for a short-term standstill agreement.
Ocean Yield said that it served a notice of termination in order to protect the company’s legal interest.
The company will however continue to participate in the discussions regarding the financial restructuring of ECS.
ECS has earlier initiated discussions with its creditors in order to restructure and recapitalise the company.
ECS is a joint venture established by Ezra Holdings and Chiyoda Corporation, after which Nippon Yusen Kabushiki Kaisha (NYK) acquired 25% equity interest in ECS.
Furthermore, Ocean Yield is considering a potential short-term contract for the vessel to a related company of Ezra at a reduced rate while a long-term solution is being discussed.
“Following delivery of six vessels during the fourth quarter and the refinancing of the bonds in American Shipping Compan, Ocean Yield has strong underlying earnings and cash position, so the reduced earnings from Lewek Connector is not expected to have any negative impact on the dividends in the near term,” Ocean Yield said.