Financially troubled ship design and shipbuilding company Shanghai Bestway Marine & Energy Technology has announced that China Great Wall Asset Management has filed a lawsuit against the company over a debt dispute.
Great Wall Asset Management claimed that Shanghai Bestway has been unable to repay RMB297m ($43m) of debt to the company according to an agreement, under which Shanghai Bestway pledged its 55% equity interest in Dajin Heavy Industry to Great Wall Asset.
Great Wall Asset has demanded Shanghai Bestway to repay all outstanding debt plus interest, and if Shanghai Bestway fails to comply, the company will have the priority of receiving compensation after selling of the Dajin Heavy shares.
Shanghai Bestway said the lawsuit might lead to an ownership change in Dajin Heavy and impact the shipyard’s operations.
This month, Dajin Heavy partnered with Yangzijiang Shipbuilding for a newbuilding contract to build two 8,000 dwt bulkers for Russian company Aston.
In March, a unit of CSIC applied with a court to restructure Shanghai Bestway.