Shenzhen-listed Sainty Marine estimated that it would have to refund CNY800 million (USD129 million) of advance payments and interest to shipowners in the worst-case scenario following the bankruptcy of its partner Nantong Mingde Heavy Industry (NMHI).
The worst-case scenario would materialise if the newbuildings under construction at NMHI could not be delivered as newbuilding contracts required, a stock filing of Sainty Marine said on 4 August.
According to IHS Sea-web.com, the newbuildings comprise six barges, one handysize bulker, and two wood chip carriers.
On 31 July, NMHI was declared bankrupt by a court in Nantong, China, as NMHI’s receiver could not find potential investors to continue with the yard’s restructuring. NMHI entered court receivership since Sainty Marine applied for the bankruptcy restructuring of NMHI in December 2014.
From early 2013 to March 2015, Sainty Marine and NMHI have teamed up to win new orders for a total of 36 vessels including wood chip carriers, platform supply vessels (PSVs), stainless chemical tankers, bulk carriers, and barges.
Related news:Sainty Marine loses orders for 14 chemical tankers
Among the 36 vessels, Sainty Marine lost all orders for 14 stainless steel chemical tankers placed by Celsius Shipping, which were planned to be built at NMHI in June. Two PSVs and a bulk carrier had already been abandoned by respective owners, with another two Ultramaxes cancelled by Sainty Marine itself.
Four wood chip carriers had been delivered to Singapore-based Nova Shipping & Logistics Group. Two barges and two Handysize bulkers had also been delivered, according to prior stock filings of Sainty Marine.
This post was sourced from IHS Maritime 360: View the original article here.