Jiangzhou Union Shipbuilding, a subsidiary shipyard of China Ocean Industry Group, is now in negotiations with two shipowners regarding six undelivered vessels.
According to China Ocean Industry, the yard has so far come to an agreement with one owner to discontinue the contracts for four of the six undelivered vessels. However, the parties have yet agreed on the repayment schedule and amount of interest payable by the yard under the shipbuilding contracts upon termination.
Splash understands the two owners are German companies Auberbach Schiffahrt and Briese Schiffahrt, who ordered four multi-purpose vessels and two multipurpose vessels separately at Jiangzhou Union Shipbuilding in 2014.
China Ocean Industry will obtain financing from banks to support the repayment to the two owners in the event the contracts are terminated.
This month, China Ocean Industry entered into a joint venture agreement with Yangzijiang Shipbuilding and the government of Ruichang City, under which Yangzijiang Shipbuilding will be responsible for managing Jiangzhou Union Shipbuilding and restoring the normal production and operations at the yard.
The new shipbuilding joint venture will continue with the construction work of the undelivered vessels and look to sell the vessels to new buyers.