Diana Shipping Inc. Announces Termination of Charter
ATHENS, Greece, Nov. 27, 2013 (GLOBE NEWSWIRE) -- Diana Shipping Inc.
(NYSE:DSX), (the "Company"), a global shipping company specializing in the
ownership of dry bulk vessels, today announced that its wholly-owned vessel
subsidiary Gala Properties Inc. has received a notice from the charterers of
the M/V "Houston" claiming that they are entitled to terminate the charter
effective November 26, 2013 for purported breaches by the owners. The Company
believes that the owners have fully performed under the terms of the charter
since its inception and that the charterers have no basis for the purported
termination of the charter. The charterers have not previously alleged
breaches by the owners.In contrast, payments by charterers under the charter
have been late on numerous occasions.
Despite efforts by the owners to resolve the dispute with the charterers, the
charterers have been unwilling to remedy their breach and anticipatory
repudiation and/or renunciation of the charter by withdrawing their wrongful
termination and providing the vessel with employment orders in accordance with
the charter. Owners have informed charterers that their conduct constitutes a
continuing repudiatory and/or renunciatory breach of the charter bringing the
charterparty to an end.Owners will now seek to mitigate their losses as a
result of the charterers' breach and reserve all their rights to claim such
losses from charterers and/or to take appropriate steps to protect their
As it has been previously announced, Gala Properties Inc. has time chartered
the vessel to Shagang Shipping Company Limited a guaranteed nominee of the
Jiangsu Shagang Group Co., at a gross charter hire rate of $55,000 per day for
a period of a minimum of fifty-nine (59) months and a maximum of sixty-two
(62) months. The charter commenced on November 3, 2009 and has an initial
termination date of October 3, 2014.
About the Company
Diana Shipping Inc. is a leading global provider of shipping transportation
services through its ownership of dry bulk vessels. The Company's vessels are
employed primarily on medium to long-term time charters and transport a range
of dry bulk cargoes, including such commodities as iron ore, coal, grain and
other materials along worldwide shipping routes.
Cautionary Statement 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.
The Company 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," "anticipate," "intends," "estimate," "forecast," "project,"
"plan," "potential," "may," "should," "expect," "pending" and similar
expressions identify forward-looking statements.
The forward-looking statements in this press release 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, other 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 charter rates
and vessel values, changes in demand for dry bulk shipping capacity, changes
in our operating expenses, including bunker prices, drydocking and insurance
costs, the market for our 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, vessels breakdowns and
instances of off-hires and other factors. Please see our filings with the
Securities and Exchange Commission for a more complete discussion of these and
other risks and uncertainties.
CONTACT: Corporate Contact:
Director, Executive Vice-President and Secretary
Telephone: + 30-210-9470-100
Investor and Media Relations:
Telephone: + 1-203-972-8350
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