Chinese domestic bulk shipping operator CSC Phoenix has announced that the company’s subsidiary Shanghai Huatai Shipping has entered into an agreement to purchase the 2000-built handysize bulk carrier Xing Qiang from Shanghai Haiyu Shipping.
The Japanese-built 48,200 dwt vessel is currently being pledged to Bank of Shanghai in a loan arrangement while Shanghai Haiyu Shipping has repaid the loan in advance to the bank to unfreeze the ship.
The purchase price for the ship is RMB76m ( $10.9m), higher than a $7.2m fair market value provided by MSI.
Delivery of the vessel is scheduled between December 15 and January 15.
CSC Phoenix said the transaction will help Huatai Shipping retain its domestic shipping qualification as the company is currently facing a tonnage shortage problem.
Tianjin Shunhang Shipping’s controlling shares in CSC Phoenix has been recently frozen by banks due to its debt disputes with creditors and the owner of Tianjin Shunhang has also been blacklisted by a court due to an inability to comply with court rulings.