Singapore handysize specialist Pioneer Marine has terminated contracts with China’s Yangzhou Guoyu Shipyard for the last two newbuild 38,400 dwt handysize vessels it had on order at the yard.
Pioneer says it reached a mutual agreement with the shipyard, and that all instalments paid including interest will be paid back by the refund guarantor.
Pankaj Khanna, CEO of Pioneer Marine, commented: “Following the termination of the last two newbuildings we have eliminated all capital expenditure for the company. Our proactive management of this unprecedented low cycle has seen us cancel ten of the twelve newbuildings ordered in the original program and demonstrates the complete alignment of management with shareholder’s interests.
“We are now well positioned to not only ride out the current cycle but to also take advantage of opportunities as they arise.”
Along with the cancellations, Yangzhou Guoyu has been affected by a worker salary dispute in January and last month its parent company, Wuhan Guoyu Group, said that the group had around $75m in overdue loans.
