MC Shipping Receives Settlement Proposal from Charterers
March 30 2007 - 2:18PM
Business Wire
MC Shipping Inc. (AMEX: MCX) (the �Company�) today announced that
it has received a settlement proposal from the previous charterers
of the Company�s vessel La Forge (the �Charterers�) for their claim
in connection with the charter party originally entered into in
August 2001 (the �Charter Party�). Following the extended
dry-docking of La Forge in 2006, the Charterers lodged a claim
against the Company for damages arising out of the deprivation of
use of the vessel and compensation was demanded for the additional
cost of hiring replacement vessels. The Company intended to
challenge this claim; however the Charterers agreed to
substantially reduce the quantum of their claim if a settlement
could be reached out of court and the Company considered the
settlement proposal worth accepting rather than incurring the costs
of arbitration. This settlement will result in a charge of $905,292
above amounts previously accrued for this incident that the Company
will book in the 2006 accounts as an additional non-recurring
expense. The Company and its legal advisors will seek recovery of
this expense from the technical managers responsible for the
dry-docking and, in the Company�s view, liable for failing to
provide services in a timely fashion. The accounting standards do
not allow offsetting of these two items. Tony Crawford, the
Company�s CEO, commented on the proposed settlement, �while we
would have liked to reach a simultaneous settlement with our
Charterers and technical managers responsible for planning and
implementing the dry-dock, this was not possible. However, with the
help of our legal advisors, we will continue to seek full recovery
from the third party. We are pleased to say that this is the last
remaining liability on our extended 2006 dockings�. The Company
expects to file its Annual Report on Form 10-K for the year ended
December 31, 2006 that will include this settlement latest on
Monday, April 2, 2007. ABOUT MC SHIPPING INC. MC Shipping Inc. is
an international shipping company focused on maritime
transportation of liquefied petroleum gas (LPG), with headquarters
in Monaco and an office in London. MC Shipping fully or partially
owns and operates a fleet of 19 vessels that serve the world�s
major oil, gas, shipping and trading companies. FORWARD-LOOKING
STATEMENTS Except for the historical information contained herein,
the matters discussed in this press release could contain
�forward-looking statements� that are based on current expectations
and assumptions that involve risks and uncertainties, which could
cause actual results to differ materially from those predicted. MC
Shipping Inc. undertakes no obligation to update any
forward-looking statement to conform to actual results or changes
in the Company�s expectations, whether as a result of new
information, future events, or otherwise.
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