Shenzhen-listed Sainty Marine’s under-construction newbuild at Nantong Mingde Heavy Industry (NMHI) has been abandoned by its shipowner, because of Sainty Marine’s failure to deliver the newbuild as scheduled.
Algoma Central is the shipowner, according to IHS Maritime Sea-web.com.
The newbuild – a 38,000 dwt handysize bulker – could not be delivered as scheduled on 31 March, a stock filing of Sainty Marine said on 10 June.
Algoma Central had informed the company via email on 9 June that it had decided to abandon the newbuild with immediate effect in accordance with the shipbuilding contract signed with Sainty Marine.
The shipowner reserved the right to seek compensation from Sainty Marine over the breach of contract, which means that Sainty Marine would have to refund the instalments for shipbuilding costs and relevant interest.
Sainty Marine has been in co-operation with NMHI to sell newbuilds by NMHI since 2013. The company is also seeking to take over NMHI as it has provided funds for NMHI to finance a series of newbuilds over the past years. In the end of 2014, NMHI was unable to repay its funds, as Sainty Marine had predicted.
Additionally, Sainty Marine warned that two more Ultramaxes built by its own shipyard could not be delivered to Precious Shipping. The two newbuilds were scheduled for delivery on 31 May. In May, Precious Shipping refused to take delivery of the first two same-class vessels from Sainty Marine.