Euroseas has settled its dispute with Dayang shipyard by acquiring one ultramax bulker for deposits already paid.
The Aristides Pittas-led company has added the 63,500-dwt newbuilding Alexandros P for 62% of its contracted price.
Euroseas ordered two vessels for $27.7m each at Sinopacific Shipbuilding Group’s Dayang yard in 2014.
This means Euroseas will now acquire the vessel for around $17.1m, an amount which has been covered through deposit payments made for the two vessels in previous months.
The company will also have to spend around $0.5m to conclude the purchase of the Alexandros P.
TradeWinds understands Euroseas will not make a move for Alexandros P’s sister vessel, Hull DY 161.
In August, the Nasdaq-listed company binned the contract with the shipyard due to “excessive delays” and launched arbitration proceedings.
The vessel was slated for delivery in the second quarter of 2016.
With this acquisition, Euroseas makes good on its promise to expand its fleet and take advantage of low asset prices.
Aristides Pittas, chairman and chief executive of Euroseas, said: “Alexandros P alongside with our kamsarmax newbuilding Xenia, which we took delivery of earlier in 2016, spearhead the renewal of our dry bulk fleet in anticipation of a recovery in the dry bulk market.
“The conclusion of this agreement also settles our claim against the yard in the best possible ways and equips us with a solid balance sheet as we look forward to leveraging opportunities in the market.”
Before taking delivery of the vessel in January, Euroseas will first inspect it on 27 December.
This is the third vessel addition to be announced by the company in less than a month.
