Greater China

Banks seize Dongfang tankers

Singapore: Credit Suisse and a group of Chinese banks have seized seven Dongfang Shipbuilding tankers due to outstanding debts of around $250m after the Singapore Supreme Court ruled in favour of the creditors, a minority shareholder told Reuters.
The Singapore-based shipbuilder was delisted from the alternative investment market of the London Stock Exchange last week after struggling for months to stay afloat in the face of a severe downturn in the maritime industry.
Dongfang has been without a chairman since Venkatesh Narayanaswamy resigned in February. Chief Financial Officer AKM Ismail quit a few weeks later.
Credit Suisse has taken control of four Dongfang tankers in Singapore since May 26 after the shipbuilder failed to pay around $42m in debts.
Three tankers have also been seized by a consortium of Chinese banks, including Agricultural Bank of China and Bank of China, due to outstanding debts of $204.07m.
Dongfang was previously contracted to deliver the seven vessels to European-based clients, which later cancelled the orders.

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