Genco Shipping & Trading has announced that it abandoned USD 53 million on deposit for the purchase of 6 new ships.

Mr John C Wobensmith CFO of Genco said that approximately 93% of its fleet’s available days are covered by charter contracts for the remainder of 2008 and 67% in 2009. Genco has four other ships scheduled to be delivered in 2009.

Mr Wobensmith said that while the company was ready to take delivery of the new ships, its liquidity has been strengthened during a difficult market environment and our ability to act opportunistically has been enhanced, by the decision.

The cancellation will result in a fourth quarter charge of USD 54 million because of the deposit forfeitures, but Genco said that it repaid the USD 53 million in debt associated with the deposits using cash flow from operations, which reduces the debt outstanding under its 2007 revolving credit facility to USD 1.1 billion.