Sainty Marine faces troubles with newbuilding deliveries and completion

Dry bulk owner Precious Shipping said that the two bulk carriers did not meet standards of fuel savings, and rejected Sainty Marine’s proposed solutions to rectify the problems, Shenzhen-listed Sainty Marine announced to the stock exchange.

Thailand’s Precious Shipping booked the pair of bulkers with Sainty Marine back in April 2014, with deliveries planned in April 17 and April 24 this year, respectively.

“With regards to the two 64,000 dwt bulkers facing risks of non-delivery to the buyer, the two contracting parties may need to go into arbitration,” Sainty Marine stated.

Sainty Marine also revealed that it faces the risk of not being able to fulfil some of the 32 newbuilding contracts undertaken at debt-ridden Nantong Mingde Heavy Industry, which the former is trying to acquire via a debt-for-equity rescue deal.

Out of the 32 newbuilding jobs that Sainty Marine is now helping Mingde Heavy to complete, eight have been delivered, two were cancelled and two deliveries are overdue.

The remaining 20 newbuilding job status were not updated by Sainty Marine.

Sainty Marine itself is battling to regain financial stability as its bank accounts with balances worth a total of $3.88m are frozen by Bank of China and Export-Import Bank of China (China Exim Bank).