CITIC Starts Court Proceedings Against Qingdao Port Operator

Posted by Joseph R. Fonseca
Tuesday, July 08, 2014

 

China's CITIC Resources Holdings Ltd has begun court proceedings against the operator of a bonded warehouse at Quindao port as legal action ramps up following an investigation into metals financing fraud at the world's seventh busiest port.

CITIC Resources said last month it had been unable to secure around 120,000 tonnes of alumina, more than half of the alumina stocks it had title to that were stored at the port pending payment by buyers and delivery.

Under the legal action, CITIC is requiring the port operator to confirm its ownership of 223,270 tonnes of alumina and 7,486 tonnes of copper, and to release the metal to the group or to offer compensation, it said in a filing to the Hong Kong stock exchange on Tuesday.

"Until the status of the investigation is clarified and the group has conducted its own investigation, the company is not able to accurately assess the impact on the Group's alumina and copper stored at Qingdao port or on the Group itself," CITIC said in the filing.

CITIC Resources, in which Singapore sovereign wealth fund Temasek Holdings has an 11.46 percent stake, is the commodities trading unit of China's biggest and oldest state-owned financial conglomerate company, Citic Group Corp.

CITIC is the second company to say it has started legal action to recoup losses since Chinese authorities launched an investigation last month over the alleged duplication of warehouse receipts to obtain multiple loans secured against a single cargo of metal.

They are investigating the company at the centre of the fraud Decheng Mining and linked companies. Decheng Mining has not commented on the probe.

Last month, China's Shanxi Coal International Energy Group said it was suing Decheng and its parent for over $177 million in missed payments the two had guaranteed.

But given multiple global and domestic banks and collateral managers have been hit by the potential fraud, each with their own tailored contracts, questions over jurisdiction, liability and length of the court process remain.

As details of the potential fraud become clearer, the possible exposure of various parties to Decheng and its parent could amount to around $2.8 billion, according to an aggregation of amounts contained in company statements and Chinese media.

Goldman Sachs estimated in March that commodity-backed deals account for as much as $160 billion, or about 30 percent of China's short-term foreign-exchange borrowing.

(Reporting by Melanie Burton in Melbourne; Additional reporting by Fayen Wong in Shangai; Editing by Stephen Coates and Richard Pullin)

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

Legal

Khamenei Says Iran Nuclear Weapons are a U.S. "Myth"

Iran's Supreme Leader Ayatollah Ali Khamenei told military commanders on Sunday the United States had created the "myth" of nuclear weapons to portray Iran as a threat,

PSV Launching Ceremony at Gondan

At high tide today at Gondan Shipyard in Figueras, the New PSV (TBN) for the Norwegian Ship-Owner, Simon Møkster Shipping, was launched. Different personalities

New CEO for Evergas

Evergas has appointed Steffen Jacobsen as CEO of the company as of 8 May 2015 Mr. Jacobsen joined Evergas 1 February 2015 as Vice President, Fleet after almost 35 years in Maersk.

Ports

Greek Capesize and Maersk Boxship Mishap in Suez Canal

The Danish container ship Susan Maersk has collided with the container ship Margret Oldendorff flying the Libyan flag.   The 347 meter long, 110387 dwt container

2 Damen Tugs for KOTUG’s European Harbor Towage

Damen Shipyards Group delivered two sister tugs ATD 2412 ‘ZP Bison’ and ‘ZP Bear’ to strengthen KOTUG’s European Harbour Towage. On April 8th 2015, the sister

NCSP Group Cargo Traffic Up 6% in Q1 2015

Novorossiysk Commercial Sea Port Group (NCSP Group or the Group) (LSE: NCSP, Moscow Exchange: NMTP) reports that Group’s consolidated cargo turnover in Q1 2015 increased by 2 million tonnes or 6.

Energy

Khamenei Says Iran Nuclear Weapons are a U.S. "Myth"

Iran's Supreme Leader Ayatollah Ali Khamenei told military commanders on Sunday the United States had created the "myth" of nuclear weapons to portray Iran as a threat,

New CEO for Evergas

Evergas has appointed Steffen Jacobsen as CEO of the company as of 8 May 2015 Mr. Jacobsen joined Evergas 1 February 2015 as Vice President, Fleet after almost 35 years in Maersk.

Icebreakers Ordered for Neft’s Novy Port Project

Aker Arctic’s icebreaker design selected for Gazprom Neft’s Novy Port project   Aker Arctic and Vyborg Shipyard have confirmed a contract for the design of two

News

China Shipbuilders may Merge to Stay Afloat

The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media.

Termination of Seadrill Unit's and Rosneft Deal Extended

North Atlantic Drilling (NADL), a subsidiary of Seadrill, will delay the closing of a deal with Russia's Rosneft by two years and has agreed to renegotiate the terms of the agreement,

Taiwan's Yang Ming Marine to Add Bigger Vessels to its Fleet

Yang Ming Marine Transport Corporation, Taiwnanese global shipping and logistics services company,  will take delivery of 14 large-sized ships over the next two years,

 
 
Maritime Security Naval Architecture Navigation Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.2099 sec (5 req/sec)