In December 2010, Safe Bulkers (SB) contracted with a Chinese yard for the construction of a Cape-size vessel (180,000 MT DWT Capacity). The vessel was originally expected to be delivered to SB during the third quarter of 2012, but in any case not later than December 31st, 2012. During the most recent earnings conference call, the company's CEO Mr. Polys Hajioannou disclosed that the yard was facing significant construction delays and would not be in position to meet the delivery deadline. Mr. Polys Hajioannou also briefly discussed the options available to the company stemming from the yard's inability to meet its contractual obligations.
I believe that SB has a huge bargaining chip on its side that could greatly improve its current financial position. The contracted price for the new-building vessel was $53 million. In today's market environment, the resale price of a Cape-size new-building vessel is approximately $41 million.
I believe that SB has a huge bargaining chip on its side that could greatly improve its current financial position. The contracted price for the new-building vessel was $53 million. In today's market environment, the resale price of a Cape-size new-building vessel is approximately $41 million.
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