A view of the Rongsheng Heavy Industries shipyard is seen in Nantong, Jiangsu province in this May 21, 2012 file photo. (c) REUTERS/Aly Song
HONG KONG/SINGAPORE, July 11 (Reuters) – A court has granted a unit of China Rongsheng Heavy Industries approval to proceed with legal action to reclaim a 630 million yuan ($103 million) security deposit a week after China’s biggest private shipbuilder asked for financial help.
China Rongsheng said in a statement to the Hong Kong Stock Exchange late on Thursday that Jiangsu Rongsheng Heavy Industries had placed the deposit while bidding for a stake in the Anhui Province Property Rights Exchange.
China Rongsheng owns 96.09 percent of Jiangsu Rongsheng, according to the company’s 2012 annual report.
China Rongsheng asked the government and its biggest shareholders for financial help last week after cutting its workforce and delaying payments to suppliers, while warning of a net loss for the first half of 2013.
Analysts said the company could be the biggest casualty of a local shipping industry suffering from overcapacity and shrinking orders amid a global shipping downturn.
($1 = 6.1341 Chinese yuan) (Reporting by Clement Tan in Hong Kong and Keith Wallis in Singapore; Editing by Miral Fahmy)
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,163 members that receive our newsletter.
Have a news tip? Let us know.
VARD has secured a contract to design and construct five state-of-the-art Walk-to-work vessels for an international client. The vessels, based on the VARD 3 32 design, will serve offshore platforms...
Singapore-based rig builder Keppel Ltd. is set to secure complete control over 13 legacy rigs currently held by Rigco Holding Pte. Ltd. (Asset Co), part of a strategic move reflecting...
A Russian Navy frigate equipped with new generation hypersonic cruise missiles has conducted drills in the English Channel and is carrying out tasks in the Atlantic Ocean, Russian news agencies reported on Tuesday.
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,163 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
