The sale of Chinese dry bulk operator CSC Phoenix is now in doubt following a dispute between Tianjin Shunhang Shipping, the controlling shareholder of the company, and the proposed buyer Guangzhou Wenhua Furui.
In April, Tianjin Shunhang Shipping signed an agreement to sell its 17.89% holding in CSC Phoenix to Guangdong Wenhua Furui for RMB1.9bn ($274m).
Shenzhen Stock Exchange later questioned the deal and requested explanation from Guangdong Wenhua Furui on the basis and rationality of pricing in the deal.
According to CSC Phoenix, a disagreement has surfaced where Wenhua Furui claims Tianjin Shunhang has not fulfilled the contract terms requiring the reaching of debt settlement agreements with creditors.
CSC Phoenix said the company has urged the parties to solve the issues soon in order to facilitate the deal, however so far the parties have yet reach an agreement and the deal is at risk of being terminated.
