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Sainty Marine hit by more shipbuilding cancellation contracts

Sainty Marine hit by more shipbuilding cancellation contracts
Troubled Chinese shipyard Sainty Marine has been hit by more cancellation of shipbuilding contracts, the latest being two 84,000 dwt dry bulk carriers ordered by a Greek shipowner.

Sainty Marine has received $12.88m of payment from the owner, which booked the newbuilding bulker pair back in March 2014.

Under the cancellation agreement, the Greek owner agreed to allow Sainty Marine to keep $5.1m as compensation while the remaining $7.78m will be returned, the Chinese yard announced to the Shenzhen stock exchange.

Over the past few months, Sainty Marine has been impacted by cancellation contracts including two 64,000 dwt bulkers for Precious Shipping and four 64,000 dwt for Corbita Maritime Investment.

In another deal, Sainty Marine signed a dispute settlement agreement with a Dutch shipowner over the payment of four ships.

The Dutch owner had ordered the four ships in June 2008 at a price of EUR900,000 ($968,700) each or a total of EUR3.6m. When the ships were delivered in June 2011, the owner had yet to pay up a remaining EUR2.8m.

Under the dispute settlement agreement, Sainty Marine agreed to reduce the unpaid amount to EUR2.24m and requested the owner for a full repayment within a stipulated time.

Sainty Marine is now facing a host of problems such as mounting debts, contract cancellations by buyers, frozen assets and resignation of key executives.