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More newbuilding cancellations and assets frozen at Sainty Marine

More newbuilding cancellations and assets frozen at Sainty Marine
The string of bad news continues for Chinese shipbuilder Sainty Marine as the company announced on Wednesday a cancellation for four boxship newbuildings and of assets frozen by a creditor.

In an announcement to the Shenzhen Stock Exchange, Sainty Marine said Dutch ship investment firm Universal Marine has not been able to secure financing for the four 2,350 teu container vessels due to the sluggish shipping market.

The newbuilding contract was entered into back in March 2014 and the total value of the contract was estimated at $166m.

The latest shipbuilding contract cancellation comes just one day after Thailand’s Precious Shipping refused to take delivery of two dry bulk carriers from Sainty Marine due to quality issues.

Sainty Marine said the cancellation was a mutual agreement and neither parties will need to shoulder any form of compensation.

Sainty Marine also announced that the Wuhan Maritime Court has frozen RMB390.79m ($62.94m) worth of its assets at the request of its creditor Bank of Nanjing. The assets include several vessels that are currently under construction at the yard.

Financially troubled Sainty Marine has just admitted that it is finding it hard to fulfil some of its 32 newbuilding contracts, as it struggled to regain financial stability, made worse by the recent suspension of its bank accounts with balances worth some $3.88m.

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