Athens-based Paragon Shipping Inc announced that it has received a notice of default from China’s Yangzhou Dayang Shipbuilding for not taking delivery of a dry bulk carrier.

The ultramax newbuilding with hull number DY4050 has been built at the shipyard owned by Sinopacific Shipbuilding Group, which is facing serious financial troubles due to the shipbuilding downturn.

Dayang Shipyard is currently struggling with cashflow issues leading to unpaid wages and stalled operations at the yard.

Separately, Paragon Shipping pointed out that it will take delivery of three kamsarmax dry bulk carriers scheduled for delivery in the third and fourth quarter of 2016 from Jiangsu Yangzijiang Shipbuilding.

Meanwhile, Paragon Shipping also announced that it plans to voluntarily delist from Nasdaq and move to a listing on the over-the-counter markets as the company failed to meet Nasdaq’s minimum stockholder equity requirement of $2.5m.