Uljanik’s crisis deepens as Algoma cancel another shipbuilding contract

Uljanik’s crisis deepens as Algoma cancel another shipbuilding contract

Pula-based shipyard Uljanik has lost another shipbuilding contract as the Canadian group Algoma Central Corporation officially unilaterally rescinded the contract for the construction of one ship for the transportation of bulk cargo with self-unloading system for the Great Lakes. The reason give is the “impossibility of Uljanik d.d. to fulfil its contractual obligations with the contract no longer being binding for the contracting parties”.

Algoma’s statement also added that “at the request of the buyer on subject construction all activities have been previously suspended and physical construction has not yet been initiated”.

That’s not the only bad news for Uljanik since on October 2 the company’s bank account has been blocked for the second time in a few days. “Negotiations with the company of the enforcement creditors are underway with the aim of unblocking the account,” Uljanik said in a statement posted on the Zagreb stock exchange. The shipyard’s bank account was blocked from August 29 to 30 and from September 3 to 13 and unblocked to pay workers’ wages.

Earlier in September the Norwegian owner Siem Shipping also cancelled an order for four car carriers due to the troubled Croatian shipbuilding group’s inability to deliver the vessel according to the contract terms.

Nicola Capuzzo

Nicola is a highly qualified journalist focused on transport economics, logistics and shipping with broad experience in both online and printed media. Specialties: shipping, ship finance, banking, commodities and port economics. He regularly interviews Europe's top shipowner executives for Maritime CEO magazine.

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