Shenzhen-listed Sainty Marine’s chairman dismissed suggestions that the shipbuilder will go broke on a series of defaults.
The company is actively dealing with the defaulted bank loans, Wang Shuhua, chairman of Sainty Marine, told IHS Maritime on 12 May, adding that as long as the measures used to tackle the defaults are effective, the company will not be bankrupt.
As of 11 May, the company defaulted on a total of CNY370 million (USD60 million) of bank loans and a bill of exchange, according to a stock filing of the company.
From 7 to 11 May, it added CNY12 million in overdue loans borrowed from the Bank of Nanjing and Jiangsu Financial Leasing.
Adding to that, Sainty Marine had already reported defaults on outstanding bank loans borrowed from Bank of Nanjing, Jiangsu Bank, and China Merchants Bank and a bill of exchange.
The bill of exchange was drawn upon Sainty Marine for Nantong Mingde Heavy Industry (NMHI), which the company is seeking to take over.
In addition, the company said it had failed to deliver two completed Ultramax bulk carriers to Precious Shipping as scheduled. Precious Shipping argued that the newbuildings could not meet fuel efficiency targets.
Sainty Marine said the delivery failure could lead to arbitrations between the parties.
It had also cancelled orders for another two Ultramaxes at NMHI, which are still under construction at NMHI.
Sainty Marine also has failed to deliver two Handysize bulkers as scheduled, which had been completed at NMHI and taken over by Sainty Marine.