Shanghai: In their latest board meeting, Li Jiahua, board secretary of the financially troubled CSC Phoenix, admitted that the company is in arrears on five vessel charter deals.
Accoding to Li, CSC Phoenix chartered five vessels from five overseas shipowners in 2009 and 2010, and is now unable to pay for these vessels and parent company CSC Sinotrans is also unwilling to pay for them. Currently CSC Phoenix is in negotiations with the shipowners in an attempt to cancel the contracts, however, the shipowners are expected to ask for compensation.
CSC Phoenix has already been taken to court by five of its creditor banks asking for total repayment of nearly RMB2bn. [31/05/13]
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