STX France SA, a 66.66% owned subsidiary of STX Europe AS, has rescinded the contract with GNMTC (General National Maritime Transport Company) - the state owned Libyan shipping company - for the construction of a 140,000-ton cruise vessel for delivery end-2012. The reason for the rescission is the default of payment from GNMTC.

STX France is confident to be able to find a new buyer for the vessel. Due to insurance coverage for such an incident, the rescission is expected to have limited impact on the financial results of STX France.

GNMTC, which is run by Muammar Gaddafi's son, Hannibal Gaddafi, missed a payment to STX on May 15, 2011.

STX did confirm that construction is continuing and that they are in touch with GNMTC, and will look for solutions for delivery to GNMTC or another party.

The newbuild is based on the latest class of MSC ships.