Shenzhen-listed Sainty Marine has seen more of its assets seized by court upon application of its creditor.
On 7 May, the Nanjing Municipality Gulou District People’s Court ruled that assets worth an aggregate of CNY80.3 million (USD13.0 million) owned by Sainty Marine and its subsidiaries should be frozen, a stock filing of Sainty Marine said on 18 May.
The court made the rulings after Bank of Nanjing applied for the asset preservations on the same day.
The bank should file lawsuits against the company within 30 days after the asset preservations, the court said.
Before the most recent seizure, the court seized Sainty Marine’s assets, worth a total of CNY740.8 million, because of various disputes with its creditors. The creditors are Bank of Jiangsu, Bank of Nanjing, and Jiangsu Yizheng Rural Commercial Bank.
On 14 May, the company together with three of its former executives were sued by Bank of Jiangsu over a loan dispute. The bank became the first of the creditors of Sainty Marine to sue the company after securing asset preservation of Sainty Marine.
The bank demanded repayment of a loan with principal of CNY300 million and interest payment of CNY2.4 million.
In September 2014, the company borrowed 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.