Chinese shipyard Sainty Marine has been ordered by a local court to pay Nanjing Yahao Ship Manufacturing approximately $202,800 over the construction of four barges, a sum that the shipbuilder has managed to lower after a successful appeal.
Nanjing Yahao filed a lawsuit at Wuhan Maritime Court back in July 2013, seeking compensation of RMB7.37m ($1.19m), but the court ruled in July 2014 that Sainty Marine need only to repay RMB2.48m.
However, Sainty Marine lodged an appeal to the Hubei Supreme Court, and the higher court has now ruled that Sainty Marine will instead pay $110,000 in shipbuilding cost and RMB575,300 as compensation to Nanjing Yahao, putting the total repayment at around $202,800.
Shenzhen-listed Sainty Marine is mired in financial troubles as some of its assets and bank accounts are frozen. The yard is also hit by shipbuilding contract cancellations and buyer’s refusal to take delivery of badly finished vessels.
The company also faces the risk of a failed debt-for-equity rescue deal over the restructuring of debt-ridden compatriot Nantong Mingde Heavy Industry.
Sainty Marine had reported a loss of RMB327.59m in 2014 and it warned of a continued loss in 2015.
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