JES Holdings, the Singapore-listed platform of bankrupt Chinese shipbuilder Jiangsu Eastern Heavy Industry, has announced that the company has failed to complete a deal to sell its shipbuilding business.
According to JES Holdings, the long-stop date for the proposed disposal of the shipbuilding subsidiaries was December 31, 2017. The company has been negotiating with the purchaser on an extension of the long-stop date, however the parties could not reach an agreement and will be entering into a termination and settlement agreement.
Additionally, the company has been informed that Jin Xin, former chairman of JES, has been sentenced by the Jingjiang People’s Court to an imprisonment of twelve years and six months. However the charges that Jin has been convicted of are still unknown, as the written judgment has yet been issued by the court.
The board of the company is considering the option of pursing civil actions against Jin, which will be depend on whether the interests of the company has been adversely affected by any acts by Jin.
JES ceased operations in August 2015 due to a major financial crisis and chaos within the Jin family, which controls JES.
In 2015, JES announced the resignation of chairman and CEO Jin Xin and appointed Jin Yu, daughter of Jin Xin as CEO and Chu Caixia, wife of the Jin Xin, as non-executive chairman. However, Jin Xin later claimed his resignation letter was forged and that he had not resigned from the company.