Debt-Laden Bulk Shipper to be Liquidated

Posted by Greg Trauthwein
Thursday, April 10, 2014
A Chinese court has ordered a unit of debt-laden dry bulk goods shipper Chang Jiang Shipping Group Phoenix Co Ltd to liquidate its assets, displaying further evidence of the troubles faced by the country's beleaguered shippers.
 
The unit, whose Chinese name is translated as Chang Jiang Jiaotong Keji, is unable to pay its debt or stay solvent, prompting three of its creditors to apply to the Wuhan intermediate court to liquidate its assets, Chang Jiang Shipping said in a filing on the Shenzhen stock exchange.
 
The unit, in which Chang Jiang Shipping owns an 89 percent stake, has ceased to operate.
 
China's shipping sector has been plagued by overcapacity since the global financial crisis because new vessels ordered before the downturn have flooded the market.
 
China Rongsheng Heavy Industries Group, the country's largest private shipbuilder, posted a larger loss in 2013, while China COSCO Holdings , the largest Chinese bulk shipping company, eked out a profit only after disposing of assets.
 
Chang Jiang Shipping has also had its share of woes.
 
It has been sued for loan repayment by five banks, including China Merchants Bank Co and China Minsheng Banking Corp. It also faces lawsuits from the leasing arm of the Industrial and Commercial Bank of China and China Petroleum and Chemical Corp for unpaid bills.
 
The company, a subsidiary of state-owned Sinotrans & CSC Holdings, is expected to report a third straight year of losses for 2013, with its net loss widening to 43 billion yuan ($6.9 billion) from 18.8 billion yuan in the previous year.
 
Any China-listed company that records three consecutive years of losses faces the possibility of being delisted, though Chang Jiang might be spared as it is holding bankruptcy restructuring talks with creditors, Sinotrans spokesman Xu Jiandong said in February. ($1 = 6.2005 Chinese yuan)
 
(Reporting by Meg Shen in Hong Kong; and Lee Chyen Yee in Singapore; Editing by Dale Hudson)
 
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

Cargill: 50,000T of Sugar Affected by Brazil Fire

Approximately 50,000 tonnes of sugar were stored in a warehouse affected by fire in the Teag terminal in Brazil on Monday, Cargill Inc said in a statement. The terminal,

Simushir Under Tow by Barbara Foss

Foss Maritime's ocean-going tug, the Barbara Foss, is towing the Russian cargo vessel, Simushir, which lost power late Thursday night off the west coast of Haida Gwaii.

Vancouver Welcomes Bulker on Her Maiden Voyage

The Port of Vancouver USA welcomed the M/V Jobst Oldendorff, commanded by Capt. Baisie of Ghana, on her maiden voyage October 16. Capt. Baisie and his 21-member

Finance

PDVSA Charters Another Algerian Crude Cargo

Venezuela's state-run oil company PDVSA has hired a supertanker to load a second 2 million-barrel cargo of Algerian crude, according to preliminary tanker fixture data.

Gulf Craft to Invest $100m in Dubai Shipyard

Company plans to invest $100 million over the next five years in the development of a new shipyard in Dubai Maritime City to build a global luxury yachts manufacturing

Pentair Reports 3Q 2014 Sales of $1.8 bi

Pentair plc today announced third quarter 2014 sales of $1.8 billion. Sales were up 3 percent compared to sales for the same period last year. Third quarter 2014

Government Update

PDVSA Charters Another Algerian Crude Cargo

Venezuela's state-run oil company PDVSA has hired a supertanker to load a second 2 million-barrel cargo of Algerian crude, according to preliminary tanker fixture data.

Russian Minister to Intervene with Gazprom on Slovakia Gas Flow

Russia's Energy Minister Alexander Novak will intervene with Gazprom to raise reduced gas shipments to Slovakia to contracted levels, Slovakia's economy ministry

AMSA Rescues 2 East of Darwin After Boat Sinks

The Australian Maritime Safety Authority (AMSA) coordinated the rescue of two men early this morning East of Darwin. About 4.30am AEDT this morning, AMSA detected

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1117 sec (9 req/sec)