Dandong Intermediate People’s Court has ruled to freeze RMB4.893bn ($773m) worth of assets owned by Dandong Port at the request of creditor Bank of Dandong due to loan dispute.
Dandong Port said the court ruling might further deteriorate the financial status of the company and have a negative effect on the port’s operations.
Dandong Port was hit by a financial crisis in 2017 and involved in a series of bond and loan defaults. The total liabilities of the port have amount to around RMB37bn including debts with 15 banks.
The port’s creditor banks, led by China Exim Bank, formed a creditor committee in January and have been in negotiations with the port in efforts to find a solution to the debt payment issues.
Dandong Port, located on the boarder with North Korea, is a major gateway port in northeast China.