Shenzhen-listed Sainty Marine has been sued by Bank of Jiangsu over a CNY300 million (USD48 million) loan dispute, the first lawsuit brought against the company in the wake of a series of defaults on debts.
On 14 May, Nanjing City Intermediate People’s Court put on file the suit filed by Bank of Jiangsu against the company and three of its former executives, a stock filing of the company said.
The bank demanded the loan repayment with principal of CNY300 million and interest payment of CNY2.4 million.
In September 2014, the company took out the loan due in September 2015 from the bank to finance a private placement. However, the company failed to meet the schedule to complete the private placement by end of March this year.
As of 13 May, Sainty Marine has defaulted on a total of CNY422 million of bank loans and bills of exchange, the company said in a separate filing. The loans include the debt borrowed from Bank of Jiangsu.
On 12 May, Wang Shuhua, chairman of the company, told IHS Maritime that it is actively dealing with the defaulted bank loans, adding that as long as the measures taken to tackle the defaults are effective, the company will not be bankrupt.