FEBRUARY 15, 2013 — Danish operator DFDS says that "all conditions have been met for the two newbuilding contracts between DFDS and the German shipyard P+S Werften GmbH, Stralsund, concerning the construction of two freight ships (RO/RO)."

The shipbuilder filed for insolvency August 29, 2012 and DFDS canceled the original orders for the ships the following month, saying citing "the shipyard's breach of several terms of the contracts."

DFDS said today that the newbuildings form part of the company's cooperation with the Danish defense department, and since 2006 also with the German defense department, concerning delivery of tonnage capacity for defense transportation assignments (ARK project). The cooperation is based on charter agreements covering the period 2013-2021.

DFDS said that delivery of the first ship is expected to take place in fourth quarter 2013 followed by the second ship in first quarter 2014. The price of the two newbuildings is EUR 84 million. A further investment of EUR 6 million in specialized equipment is also planned.

Total planned investments in 2013 are EUR 75 million and EUR 15 million in 2014.

The ships are under construction at P+S Werften's Volkswerft, Stralsund, shipyard.

Insolvency administrator Berthold Brinkmann last month gave approval for construction to resume after an 11 week break. That came after DFDS reached the agreement that it has now formally approved.

The ships are 195 meters long and have a container capacity of 342 TEU and a cargo capacity of 3,000 track meters, which will accommodate the transport of as many as 185 trucks.

Mr. Brinkmann said last month that he has been "speaking to many interested parties who have already visited the shipyard as part of the sales process for Volkswerft Stralsund. Significant offers have already been received. A deadline has not been set."

The other P+S yard, the Peene shipyard in Wolgast, was sold to the Lürssen Group in December 2012 with the sale set to become effective date May 1, 2013