Croatian shipbuilding group Uljanik has lost another five newbuilding contracts.
Canada's Algoma has cancelled four handysize bulkers at the 3 Maj subsidiary, while Uljanik Shipyard has scrapped a deal for a livestock carrier from Wellard Group of Australia.
“The cancellation notices have been sent to the shipyard as a result of the yard’s failure to secure refinancing and Algoma has no assurance that the shipyard will be able to complete the four vessels,” Algoma said.
“The company will now initiate the process to be reimbursed for contract instalments paid to date, including issuing demands under related refund guarantees.”
The four 24,900-dwt bulk carriers for the Canadian owner were due to be handed over next year.
Algoma said “every effort is being made” to replace the cancelled vessels and that it “remains confident” of their ability to provide capacity in the interim.
Late last month, Algoma cancelled a newbuilding contract with the Pula-based shipbuilder for a bulker.
Work suspended
The livestock carrier deal was terminated after the buyer asked for work to be suspended, Uljanik said, according to bne IntelliNews.
“In order to protect its contractual rights and interest, on 12 October 2018 Uljanik has unilaterally rescinded the shipbuilding contract dated 20 March 2015 for the building of one livestock carrier,” it added.
The yard said the move was due to the inability of the buyer to fulfill its contractual obligations.
Uljanik is listed as having a 17,400-dwt ship called Ocean Kelpie on order for Wellard. It was due next July.
“At request of the buyer all activities on the subject hull have been suspended, therefore the physical production did not start,” Uljanik said.
Wellard said in a statement that it had started negotiations with the yard in August over either exiting or delaying the contract for Kelpie.
Wellard considers its options
"Wellard will immediately asses its response to Uljanik in order to protect its rights under the contract," it added.
Wellard chose to fully impair the AUD 13.8m ($9.85m) value it had on its balance sheet at 30 June, reflecting advance payments made under the Uljanik contract.
"Wellard will provide further details as the matter progresses," it said.
The shipyard has also recently seen the cancellation of four car carriers by Norway's Siem group.
The yard has been hit by strikes over late wages and the freezing of its bank account as it tries to push through a restructuring plan acceptable to the European Union.
Uljanik is still listed as having two cruiseships, three ro-ros, a dredger and a livestock carrier in its orderbook.
