Chinese shipbuilding conglomerate China State Shipbuilding Corporation (CSSC) has announced that its subsidiary CSSC-MES Diesel has filed a lawsuit against bankrupt shipyard Jiangsu Eastern Heavy Industries (JEHI) over a debt dispute.
According to CSSC, JEHI contracted CSSC-MES Diesel in 2010 for four ship engines to be installed on four 95,000dwt bulkers built for UK owner Victoria Steamship, and JEHI failed to make full payment under the contract.
CSSC reported the debt to JEHI after the yard went bankrupt, however, the receiver of the yard rejected CSSC’s debt claim.
CSSC said it has filed a lawsuit at Jiangsu Jingjiang People’s Court requesting to retrieve the RMB63.27m debt from the yard.
JEHI applied for bankruptcy with a court in March 2015 and the receiver of the yard released a notice in December 2016 to look for new investors. So far the restructuring of the yard has made no progress.