Jiangsu Rongsheng Heavy Industry, a key subsidiary of Hong Kong-listed China Huarong Energy, has had its assets worth CNY40.5 million (USD6.3 million) seized by a court over disputes with No 1 Engineering Company under CCCC First Harbour Engineering.
On 11 August, the Wuhan Maritime Court ruled that the assets of Jiangsu Rongsheng that were equivalent to CNY40.5 million should be seized upon the request of No 1 Engineering Company under CCCC First Harbour Engineering, a Chinese port builder, from that day, according to a court ruling seen by IHS Maritime.
Related news:Negotiation over sale of Jiangsu Rongsheng continues
The port builder claimed that it was in contract disputes with Jiangsu Rongsheng over building of a pier.
Jiangsu Rongsheng recorded a revenue of CNY374.7 million in the first six months of 2015, China Huarong said in August. For the period, Jiangsu Rongsheng delivered four vessels with a total volume of 1.0 million dwt, including one very large ore carrier, two Suezmax crude oil tankers, and one very large crude oil carrier. As of 30 June, Jiangsu Rongsheng’s total orders on hand consisted of 31 vessels, representing a total volume of approximately 3.2 million dwt with a total contract value of approximately USD1.3 billion, including 18 Panamax bulk carriers, one Panamax crude oil tanker, 10 Suezmax crude oil tankers, and two 7,000 teu containerships.
In July, China Huarong obtained a new bank loan of CNY6 million, which will be repayable by July 2016. This bank loan will be used to finance the shipbuilding activities.