| Shanghai-listed Zhongchang Marine announced on 11 March that it has cancelled the second of the two 47,500 dwt bulk carriers it ordered at Jiangsu Eastern Heavy Industries (JEHI). JEHI is a subsidiary of Singapore-listed JES International Holdings, which had recently filed for restructuring protection for the yard. Zhongchang Marine and Minsheng Financial Leasing sent the cancellation notice to JEHI on 9 March, stating that the companies have terminated the newbuilding contract, and that JEHI was to return the down payment and interest totaling to around CNY70 million (USD11.2 million) within five days of receiving the notice. Zhongchang Marine, via Minsheng Financial Leasing, has inked a newbuilding contract for two 47,500 dwt bulkers with JEHI in 2010. However, due to the continuing recession of the shipping market, the first of the two newbuildings was cancelled in 2014. Meanwhile, Minsheng Financial Leasing has also asked the branch of China Construction Bank in Zhenjiang, which issued the letter of guarantee for JEHI, to pay for the down payment and interest in advance. The CNY26.25 million that Zhongchang Marine invested for the newbuilding will be paid back once Minsheng Financial Leasing recovered the relevant fund. On 4 March, JES International announced that JEHI has suffered “significant financial losses”, and filed an application at China’s Taizhou Intermediate People’s Court to restructure its debt and liabilities. If JEHI’s application is approved, no other creditors will be able to commence a winding up application against the yard, and negotiations will be carried out with the creditors, JES explained. Due to JEHI's poor financial performance and the impossible completion of the newbuilding order, Zhongchang Marine and Minsheng Financial Leasing decided to dissolve the contract. |