More Troubles for Sainty Marine

  • Business & Finance

Chinese shipbuilder Jiangsu Sainty Marine Corp has been faced with another contract cancellation.

The troubled shipbuilder announced in a filing to Shenzen Stock Exchange that an undisclosed client has canceled a lake fighter under construction at Nantong Mingde Heavy Industries. The cancellation is attributed to the builder’s inability to deliver the ship on time, i.e., by March 31st.

The shipbuilder added that there is a risk it might not meet the delivery schedule for two 64,000 dwt bulkers ordered by Thai shipowner Precious Shipping. The duo forms part of a larger order for ten units.

The announcement comes following Precious Shipping refusal to take delivery of a 64,000 DWT bulker duo from the yard in May as the bulkers did not meet the fuel consumption standards set by the company.

The bulker duo was ordered in 2014 and the ships were slated for delivery on 17th and 24th of April, 2015 respectively.

The announcement could lead the two parties into an arbitration procedure.

Earlier this year, speaking of the acquisition of the Nantong Mingde Heavy Industry, Sainty Marine said that the shipbuilder is experiencing difficulties with respect to the delivery of 32 newbuilding units due to the latter’s ongoing restructuring process.

Sainty Marine has been struggling with financial hurdles over the recent period which saw freezing of its assets by banks in addition to defaulting on its bank loans.

World Maritime News Staff

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