Shanghai: CSC Phoenix announced that Wuhan People’s Intermediate Court has approved the restructuring plans of the company, which is now expected to be completed in six months.
Following the failure of the first restructuring plan, CSC Phoenix’s second restructuring plan was approved by the majority of creditors.
CSC Phoenix plans to issue 330m new shares to creditors in order to repay debts. According to Li Jiahua, board secretary of the company, the debt issue can be solved within this year after the restructure is completed.
CSC Phoenix will keep its core shipping business and its stakes in four of its subsidiaries, and will abandon assets with low profitability.
Currently there’s no new investor involved in the restructuring plan, however, CSC Phoenix said it might bring in new investors to meet the development of the company. [26/03/14]