Shenzhen-listed Sainty Marine has reported additional defaults on an aggregate of CNY57.3 million (USD9.2 million) bank loans as a result of tight liquidity.
A stock filing of the company said on 8 May that the company could not repay the outstanding bank loans that were due on 6 May and 7 May as it faced tight liquidity.
The loans were borrowed from Bank of Nanjing and China Merchants Bank on a six-month term respectively. Sainty Marine did not disclose uses of the short-term loans.
Sainty Marine said it was actively communicating with the banks to tackle the defaults.
The latest defaults were on top of the company’s defaults on a CNY63 million bill of exchange due on 3 May and a CNY300 million bank loan borrowed from Bank of Jiangsu.
The bill of exchange was drawn upon Sainty Marine for Nantong Mingde Heavy Industry (NMHI), which the company is seeking to take over.
The loan borrowed from Bank of Jiangsu in September 2014 was meant to finance a private placement for Sainty Marine. The bank claimed a dispute over the loan with Sainty Marine as it had yet to repay the loan after failing to meet a schedule to complete the private placement by the end of March 2015.
Bank of Jiangsu has secured a court order to seize assets worth CNY300 million owned by Sainty Marine and its three former executives.