Shanghai: Financially troubled Rongsheng Heavy Industries is facing more woes. Greek owner DryShips announced that it has reached an agreement with Rongsheng to cancel the newbuilding contracts for four ice-class panamax bulker vessels, in exchange for the refund of all installments paid to Rongsheng plus interest.
DryShips ordered the ships at Rongsheng at the end of 2011 and early 2012. George Economou, ceo of DryShips had warned investors in the third quarter of 2013 that it might cancel the orders due to severe delay.
Rongsheng posted a net loss of RMB3.06bn for the first half of this year. CSSC-affiliated Waigaoqiao Shipbuilding is currently in talks with the shipyard on a restructuring deal. [04/09/14]
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