Chinese dry bulk shipping company CSC Phoenix has announced that the company’s controlling shareholder Tianjin Shunhang Shipping has entered a lawsuit with Benefit China Asset Management at a Shanghai court due to a financial dispute.
Benefit China Asset Management has applied with the court to freeze Shunhang Shipping’s entire 17.89% equity shares in CSC Phoenix.
In January, Tianjin Shunhang Shipping entered a letter of intent with Guangdong Wenhua Furui Investment to transfer all its 17.89% shares in CSC Phoenix to the latter for RMB1.9bn ($274m) having earlier failed to restructure CSC Phoenix into a dredging company.
Currently the 17.89% shares have already been frozen by a court in Tianjin in another Shunhang Shipping court case. If the Shanghai court rules in Benefit China Asset Management’s favour, the company will be put into the waiting list to freeze the shares.
When contacted by Splash, an official at CSC Phoenix said the company is closely following the updates from the court cases, while an official at Tianjin Shunhang declined to comment on the issue.