Shenzhen-listed Sainty Marine and its subsidiaries have managed to cut its defaulted debts to CNY585.8 million (USD94.4 million) as of 19 May amid tight liquidity.
The company paid back CNY4.3 million of the overall overdue loans borrowed from the Bank of Nanjing on 18 May, a stock filing of Sainty Marine said on 19 May.
The company said it was studying on measures to be taken to cope with the remaining defaulted debts from its creditors.
On 14 May, the company together with three of its former executives were sued by the 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 September 2015 from the bank to finance a private placement. However, the company failed to meet the schedule to complete the private placement by the end of March 2015.