Euroseas Cancels Another Ultramax at Dayang

Image Courtesy: Euroseas

Greek owner and operator of drybulk and container carrier vessels Euroseas Ltd. has cancelled another Ultramax dry bulker, Hull Number DY 161, under construction at Sinopacific Shipbuilding’s Dayang yard in China.

The 63,500 dwt ship, which was previously scheduled for delivery at the end of August 2016, was cancelled due to excessive construction delays, the company said.

Euroseas has demanded the return of its progress payments and other expenses as specified in the newbuilding contract and secured by refund guaranties.

The parties have referred the matter to arbitration.

The announcement comes on the back of the previous cancellation when the company terminated its first Ultramax newbuilding ship, Hull Number DY 160, in June 2016 with the same yard due to excessive postponements.

“After the cancellation of our newbuilding program with the Dayang yard, we are looking forward to receiving our progress shipbuilding payments of about USD 18 million for the two Ultramax vessels which we demanded and expect to be refunded,” Aristides Pittas, Chairman and CEO of Euroseas, said.

Euroseas earlier signed an addendum to its shipbuilding contract with China’s Jiangsu New Yangzijiang shipyard for the construction of a Kamsarmax vessel, scheduled to be delivered during the first quarter of 2018.

The company now has until December 31, 2016 to decide whether to build the vessel, build a vessel of different type, credit the payment already made as part of the original contract (USD 2.7 million) to acquire a different vessel from the yard at a mutually agreed price, or decide to cancel the shipbuilding contract without any additional cost.

Pittas said that this option allows Euroseas “to be in full control of our capital expenditures,” adding that these developments, along with a debt refinancing and completed or agreed loan restructurings, “will permit us to use a significant part of the newbuilding contract payments to be refunded for investments in other vessels.”

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >