Euroseas Ltd., an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today that its Ultramax drybulk vessel, Hull Number DY 161, under construction at Dayang yard and previously scheduled for delivery at the end of August 2016, was cancelled due to excessive construction delays. 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. In June 2016, Euroseas cancelled another newbuilding contract for a similar Ultramax vessel, Hull Number DY 160, with the same yard also due to excessive construction delays.
Furthermore, as previously announced regarding Euroseas's remaining newbuilding contract with YJZ yard for the construction of Kamsarmax vessel, Hull Number YZJ 1153, scheduled to be delivered during the first quarter of 2018, Euroseas has acquired the option until December 31, 2016 to decide whether to build the vessel, or build a vessel of different type, or credit the payment already made as part of the original contract ($2.77m) to acquire a different vessel from the yard at a mutually agreed price, or decide to cancel the shipbuilding contract without any additional cost.
About Euroseas Ltd.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over more than 135 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA.
Euroseas operates in the dry cargo, drybulk and container shipping markets. Euroseas' operations are managed by Eurobulk Ltd., an ISO 9001:2008 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc. which are responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.