Troubled Chinese Shipbuilding Group JES Suspends Operations
Chinese shipbuilding and engineering group JES International says it has ceased operations and production in order to control costs as it struggles with overall disarray within the company and its subsidiaries.
JES International Group said Thursday that it is now down to just a ‘skeletal staff’ comprising of a few company executives, as well as key administrative staff, finance personnel and security personnel needed to run the group.
In a statement released Thursday, the group also updated on issues regarding missing financial documents and its appeal over a proposed restructuring application that was rejected by a Chinese court.
Regarding the missing documents, JES International says it has recovered the administrative records and common seals of two of its subsidiaries, and it is still in the process of recovering the material for four other subsidiaries. The group adds that it has also lodged a formal police report with local authorities for the recovery of the missing records, as well as taken legal action against Ms. Ju Li Li, an administrative officer of JES subsidiary Jiangsu Eastern Heavy Industries, for the unauthorized removal and possession of the sensitive material, such as constitutional documents and the company seals of all of JES’ Chinese subsidiaries.
As far as JES’s proposed restructuring, the group says it is in the process of appealing the local Taizhou Court’s ruling to reject its proposed restructuring application. A decision on the appeal is expected for November 2015, JES says.
Adding to the woes, JES is also fighting allegations that the resignation letter from former CEO Jin Xin received in May was forged. The resignation letter cited health issues as Xin’s reason for leaving.
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