Chinese domestic dry bulk shipping firm CSC Phoenix has announced that its controlling shareholder, Tianjin Shunhang Shipping, has reached a settlement agreement with Benefit China Asset Management over a financial dispute.
In February, Benefit China applied with a Shanghai court to freeze Shunhang Shipping’s entire 17.89% equity stake in CSC Phoenix, after Shunhang Shipping entered into a letter of intent with Guangdong Wenhua Furui Investment in January to transfer all its shares in CSC Phoenix to the latter for RMB1.9bn ($274m).
Last week, Shunhang Shipping and Wenhua Furui agreed to delay the signing of an official share transfer agreement to April 10, giving Shunhang Shipping extra time to solve the dispute.
Under the settlement agreement, Shunhang Shipping will repay all debts to Benefit China, and Benefit China will unfreeze the shares upon receipt of the payment.
CSC Phoenix reported a net profit of RMB9.72m ($1.41m) for the year of 2016, sharply down by 92% year-on-year. The company reduced its shipping capacity from 330,000dwt to 240,000dwt in 2016 through a series of vessel disposals.