Sainty Marine foresees loss of $467m from claims and unpaid debts

Shenzhen-listed Sainty Marine estimated that refund claims of RMB800m from advance payments and interests by shipowners over incomplete shipbuilding contracts jointly undertaken with Mingde and debts not paid by Mingde would bring about a loss of RMB2.9bn.

Mingde was declared bankrupt by a local court on 31 July, after the company failed to pull through a restructuring deal proposed by Sainty Marine, and could not find new investors to restructure its debts.

Shipbuilding contracts jointly undertaken by Mingde and Sainty Marine now face an almost certain risk of non-completion, and shipowners will be lining up to file for claims from the shipbuilders.

Sainty Marine and Mingde had been collaborating over newbuilding contracts in a bid to utilise yard capacity and lower costs. But financial troubles at both yards have led to the current problems.