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

Bulk Carrier Trends

Great Lakes Coal Falls Short in 2014

Despite a nearly 1-million ton increase in coal shipments on the Great Lakes in December, the surge was not enough to enable the trade to outperform 2013, the Lake Carriers’ Association (LCA) said,

Maersk Chief Warns on Global Trade

Nils Andersen,  chief executive  of AP Møller-Maersks, has warned that global trade will never return to scorching pre-crisis growth rates, in part because western

MOL’s Newbuilding Yahagi Maru Delivered

Mitsui O.S.K. Lines, Ltd. today announced the delivery of the coal carrier Shin Yahagi Maru, which will serve Chubu Electric Power Co., Inc. The vessel was delivered

Finance

India Not Pressurized by US-China Deal

Indian Prime Minister Narendra Modi said a climate deal between the United States and China does not put pressure on India, but that global warming itself was reason to take action.

U.S. Refinery Workers' Contract Talks Moving Slowly

With just a week of bargaining left until the national contract for U.S. refinery workers expires, the United Steelworkers union (USW) said talks with oil company

Obama, Modi Aim High on India Trip

In a fresh bid to make India an enduring strategic partner, U.S. President Barack Obama lands in New Delhi on Sunday for a highly symbolic parade and to nurture

Government Update

India Not Pressurized by US-China Deal

Indian Prime Minister Narendra Modi said a climate deal between the United States and China does not put pressure on India, but that global warming itself was reason to take action.

U.S., India to Seal Nuclear Deal

The United States and India have reached a breakthrough on two issues holding up civil nuclear cooperation between them, U.S. President Barack Obama told a news conference in New Delhi on Sunday.

U.S. Refinery Workers' Contract Talks Moving Slowly

With just a week of bargaining left until the national contract for U.S. refinery workers expires, the United Steelworkers union (USW) said talks with oil company

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Pipelines Port Authority Ship Repair Ship Simulators 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: 0.0927 sec (11 req/sec)