Costa claimed the British yard would have been unable to complete the contract to their satisfaction.
The question remains as to what will happen to the already-launched mid-body. It had earlier been reported that Costa would buy the mid-body once it was completed and outfitted to their specifications.
Costa has made no payments to Cammel Laird, as
none were due until the entire project was completed. It leaves the future of the Birkenhead yeard in a perilous position.
The news comes along with the announcement that Costa has entered into a £23 million deal to refurbish two ships, including the Costa Classica.
The Italian cruise line returned Costa Classica to Genoa in December half way through its journey to Merseyside to be broken in two and lengthened, arguing Cammell had failed to meet some of the original terms.
The second ship to be refurbished is the 37,000-ton Costa Tropicale, recently bought from Carnival, Costa's parent company.
Costa chairman Pier Luigi Foschi explained that none of the onboard works being planned were part of the Cammell Laird contract.
"These are additional works concerning all the public areas of the ship," he told Lloyd's List. "The aim is to upgrade all the ship in line with the standard of the public rooms and cabins included in the mid-body section that was expected to be fitted later this year. After this the Costa Classica will look like a new ship."
Work is being carried out in Genoa, where the ship was
dry-docked earlier this week. She will sail for her first cruise on March 16. Refurbishing of the Costa Tropicale will be more extensive. She will be delivered to Costa Crociere in February and will begin operating in June.