Shanghai: Zhongchang Marine has announced that the company and Minsheng Financial Leasing have together cancelled one of the two 47,500dwt bulkers they had ordered at Jiangsu Eastern Heavy Industries, a shipyard controlled by Singapore-listed JES International, who have just filed for restructuring protection.
Zhongchang Marine said the depressed situation in the shipping market will continue and won’t be improved in the short term, and the company has decided to cancel the bulker in order to minimize risk. The company has asked the yard to refund the prepayment and relevant interest of more than RMB70m ($11.27m) as it claims the yard has lost its ability to fulfill the contract.
Zhongchang Marine expects to register a net loss of RMB330m ($53.1m) for the year of 2014 and its stock trading is facing trading limitations after losses over two consecutive years.
