Press Releases

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30.07.2012 at 13:21CET

VLCCF - Termination of charters for two capesize bulk carriers

Knightsbridge Tankers Limited (Nasdaq:VLCCF) ("Knightsbridge"), today announced that one of its charterers, Hong Xiang Shipping Holding (Hong Kong) Co Limited ("Hong Xiang"), has redelivered the 176,000 dwt Capesize drybulk carrier Golden Zhejiang before final maturity of the charter.

The Golden Zhejiang was on charter for a rate of $32,326 per day net, for a minimum period ending September 7, 2014 and included a two year extension option in Knightsbridge's favour. The redelivery follows a period when Hong Xiang has not paid charterhire for the vessel when due.

Knightsbridge has a guarantee from Hong Xiang's parent company Beijing Jianlong Heavy Industry Group Co. Ltd. ("Jianlong Group"). The Company has a claim for outstanding unpaid hire from Hong Xiang and, in addition, will seek recovery of damages for the remaining period of the charter contract. The Company intends to seek alternative employment for the vessel following its redelivery.

Furthermore, Knightsbridge announces that the Sanko Steamship Co., Ltd. ("Sanko") has served a notice purporting to cancel its charter party with the Company and will redeliver the cape size drybulk vessel Battersea to the Company prior to the expiration of the minimum period of the charter.

The Battersea was on charter to Sanko at the rate of $39,500 per day net, for a minimum period ending on June 26, 2014. The Company has a claim for outstanding unpaid hire from Sanko and, in addition, will seek recovery of damages for the remaining period of the charter contract. The Company intends to seek alternative employment for the vessel following its redelivery.  

July 30, 2012

The Board of Directors
Knightsbridge Tankers Limited
Hamilton, Bermuda

Questions should be directed to:

Ola Lorentzon (Chairman, Knightsbridge Tankers Limited)
+46 703 998 886
Inger M. Klemp (Chief Financial Officer, Knightsbridge Tankers Limited)
+47 23 11 40 76

Cautionary Notice Regarding Forward-looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

Knightsbridge desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "except," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect" "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this document are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charterhire rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in Knightsbridge's operating expenses, including bunker prices, drydocking and insurance costs, the market for Knightsbridge's vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by Knightsbridge with the Securities and Exchange Commission.