Tianjin Shunhang Shipping, the controlling shareholder of dry bulk operator CSC Phoenix, has applied for bankruptcy with Tianjin Intermediate People’s Court and plans to liquidate due to its inability to solve its debt issues.
According to the court file, Tianjin Shunhang currently has liabilities of around RMB3.8bn ($561m) in total.
In November, a court in Wenzhou ruled to put Chen Deshun, the owner of Tianjin Shunhang Shipping, onto the country’s social credit blacklist due to his failure to comply with court rulings.
Currently Tianjin Shunhang’s entire shareholdings in CSC Phoenix has been frozen by courts at the request of creditors.
Tianjin Shunhang acquired a controlling stake of CSC Phoenix from Sinotrans & CSC in 2015 and then failed to use CSC Phoenix’s listing status to restructure its dredging business. In the past few months, CSC Phoenix suffered mass resignations and the resigned employees are believed to have moved back to Sinotrans & CSC.