Shanghai: Rongsheng Heavy Industries, China largest private shipbuilding company,is being sued by equipment provider Nantong Yanjiang Pipe Co, due to a payment dispute.
Wuhan Maritime Court has ordered a freezing of RMB16m worth of Rongsheng assets at the request of Nantong Yanjiang Pipe Co.
According to a source close to the matter, Rongsheng was unable to pay the equipment provider as it couldn’t complete work on time in order to receive final payment from the shipowner.
Rongsheng has issue a profit warning that it expected to incur a significant increased loss for the first half of 2014 as compared to a RMB1.3bn net loss in same period last year. [04/08/14]