Shanghai: Financially troubled Sainty Marine has announced that Precious Shipping has refused to take delivery of two 64,000dwt bulkers from the yard, which might lead to the two companies to go into arbitration.
Precious Shipping ordered the two vessels at Sainty Marine in April 2014, and Sainty Marine sent notices to Precious Shipping in March 2015, asking it to take deliveries of the vessels on April 17 and April 24. However, Precious Shipping has refused to take deliveries as it reckons the vessels didn’t meet quality standards.
In the meantime, Sainty Marine said it is facing the risk of not being able to fulfil some of the 32 newbuild contracts it has being built at Mingde Heavy Industry due to the ongoing restructuring of the latter.
So far 3 out of the 32 vessels have been delivered, 2 have been cancelled, and the deliveries of another two vessels are overdue.
Sainty Marine is facing a series of financial troubles, it currently has $57.5m in overdue loan and its bank accounts have been frozen.