Citigroup Seeks British Court Backing on China Metals Claims

Posted by Eric Haun
Friday, August 01, 2014

Citigroup Inc said on Friday it has started proceedings in commercial court in London to enforce its rights over $285 million of financing at two ports in China, where metals are believed to have gone missing.

Citigroup said it initiated the action on July 22 after a business counterparty and a Chinese warehouse provider commenced action in British courts to establish their rights.

Citigroup's disclosure, made in a quarterly financial filing with the U.S. Securities and Exchange Commission, did not name the counterparty or the warehouse operator.

Standard Chartered, China's CITIC Resources Holdings Ltd, Shanxi Coal International Energy Group and other firms have also made legal claims over metals financing since May. That was when Chinese authorities began investigating whether a private trading firm, Decheng Mining, and its related companies, used fake warehouse receipts at Qingdao Port to obtain multiple loans secured against a single cargo of metal.

Citigroup said it has provided about $400 million of financing for metals stored at ports in China, of which $285 million was at Qingdao and Penglai, another port where fraud is suspected. The sums represent less than 1 percent of Citigroup's corporate loan portfolio.

Citigroup said it provided the financing to clients that were non-Chinese subsidiaries of large multi-national corporations and the contracts were guaranteed by the parent companies.

It said it had no direct exposure to local Chinese counterparties and did not record any losses for the financing in the second quarter.

Citigroup Chief Financial Officer John Gerspach had said on July 18 that the global bank had about $280 million of exposure in the scandal but it believed the problems were isolated and concerned "those very specific locations."

(Reporting by David Henry in New York; Editing by Bernadette Baum)

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

EIVA Welcomes New Global Director

The Danish offshore survey solution specialist EIVA a/s has appointed a new global sales director, Jakob Møller Nielsen. He comes from a similar position at SPX Flow Technology,

ASRY in Maritime Deal with Relay

UK-based engineering firm signs service agreement to provide direct services to vessels in ASRY, expanding the list of the yard’s onsite specialist contractors.

USCG Provides Safety Tips to Paddlesports Enthusiasts

As the boating season unofficially begins, the 9th Coast Guard District is reminding paddlesport enthusiasts to take precautions to ensure safe trips and increase

Ports

Port Kembla Tariff hiked

NSW Ports have advised that from 1 July, there will be 2.38% increase to the Navigation Service Charge (Port Tonnage) and 3% increase to other charges (site occupancy,

Norwegian Dawn Arrives In Boston

The Norwegian Dawn, the cruise liner that ran aground as she left Bermuda this week, has arrived in Boston.   A story in the Boston Herald says, “Passengers

Dortmund Port's Throughput Up

In 2014, Dortmund’s combined goods throughput on ships and trains amounted to 5.7 million tonnes, compared to 5.3 in the previous year. 2.9 million tonnes (+600,000) of this was ship related.

Marine Materials

Seaway to Receive Prestigious OECD Award

The St. Lawrence Seaway Management Corporation (SLSMC) announced today that it will receive a prestigious award from the Organization for Economic Cooperation

IMO Adopts Polar Code Environmental Provisions

United Nations' International Maritime Organization (IMO) has adopted the environmental part of the Polar Code. Hereby, internationally binding regulations on

Kalmar to Heighten STS Cranes of DP World Antwerp

Kalmar, part of Cargotec, has been awarded the contract to heighten three Kalmar ship-to-shore (STS) cranes operated by DP World Antwerp Gateway NV. The order

News

EIVA Welcomes New Global Director

The Danish offshore survey solution specialist EIVA a/s has appointed a new global sales director, Jakob Møller Nielsen. He comes from a similar position at SPX Flow Technology,

USCG Assists 2nd Activist From Arctic Challenger

Coast Guard personnel assisted in the removal of an activist who secured herself to the anchor chain of the Arctic Challenger in Bellingham, Wash., Monday morning.

ASRY in Maritime Deal with Relay

UK-based engineering firm signs service agreement to provide direct services to vessels in ASRY, expanding the list of the yard’s onsite specialist contractors.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Pipelines Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1402 sec (7 req/sec)