China’s Wuhan Maritime Court has seized more of Shenzhen-listed Sainty Marine’s assets upon application by the Bank of Jiangsu.
The company’s assets worth CNY120 million (USD19 million) had previously been frozen by the court, a stock filing of Sainty Marine stated on 27 May.
The Bank of Jiangsu applied for the property preservation over loans lent to Sainty Marine that were used to finance vessel operations, Sainty Marine added.
The asset seizure may be followed by further legal action by the bank, according to the Wuhan Maritime Court ruling.
Related news:Sainty Marine cuts overdue loan debts
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 Sainty Marine’s creditors to sue the company after securing the preservation of its assets.
The bank demanded repayment of a loan with a principal of CNY300 million and interest payment of CNY2.4 million.
In September 2014, the company borrowed the loan, which was 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 2015.