Chinese domestic container shipping company Antong Holdings has entered into a strategic framework agreement with China Merchants Port Holdings and AVIC Trust to start a series of collaborations.
Under the agreement, the three parties will set up joint venture China Merchants Antong Logistics Management Company, and China Merchants Port and AVIC Trust will provide RMB50m ($7m) and RMB200m ($28m) loans to the jv respectively.
AVIC Trust will also set up a trust fund to provide supply chain financing services to Antong Holdings.
Additionally, Antong and China Merchants agreed to deepen their collaborations including promoting Antong ships to increase port calls at the ports operated by China Merchants.
The controlling shareholders of Antong Holdings, Guo Dongsheng and Guo Dongze, are currently dealing with a serious financial crisis after an illegal guarantee scandal involving Guo Dongze was disclosed, with total liabilities of the Guo brothers amounting to RMB8bn ($1.1bn).
