Cecon still waiting for delivery of first Davie newbuild

JUNE 13, 2014 — Cecon ASA is apparently still waiting for delivery of the Cecon Pride, the first of the three construction vessels it has on order at shipbuilder Chantier Davie Canada Inc., Lévis, Quebec.

When the three were first ordered, back in 2007, the entire series was scheduled to be delivered in 2009. Davie has been through various ups and downs and ownership changes since then and delivery of Cecon Pride was supposedly on schedule for a February 21, 2014 delivery until January this year. At that time it was announced that delivery had been delayed until sea ice conditions permitted sea trials, expected to be in the second half of March.

Cecon had to make some financial tweaks through its subsidiary Rever Offshore AS. Today, in an Oslo stock exchange announcement, it announced another such tweak — indicating another delivery delay.

According to the announcement, Rever Offshore AS , has signed an agreement that extend the maturity of the senior tranche A and tranche B bonds funded by certain funds and accounts managed by York Capital Management Global Advisors, LLC or its affiliates (York) up to July 15. The holder of the Tranche A Bonds and the Tranche B Bonds will receive an extension fee of $250,000 for each 15-day of extension from May 1, 2014.

Cecon says the agreement with York aligns repayment of the construction financing with the planned delivery of the Cecon Pride from the shipyard.