CSC Phoenix has announced that the board of the company has terminated its restructuring with Tianjin Ganghai Constructuion, a dredging company controlled by its chairman Chen Deshun.
In 2015, CSC Phoenix, formerly the domestic dry bulk shipping arm of state-run logistics giant Sinotrans & CSC, signed a share transfer agreement with Tianjin Shunhang Shipping, a private dredging company controlled by Chen Deshun, for the sale of its entire 17.89% equity share in CSC Phoenix for RMB1bn ($161m), making Tianjin Shunhang Shipping the controlling shareholder of CSC Phoenix.
The company planned to change its main business from inland river dry bulk shipping to dredging.
CSC Phoenix announced a restructuring plan in December 2015, in which Tianjin Ganghai Constructuion will transfer all its assets worth RMB7.8bn ($1.16bn) into CSC Phoenix.
The company said Tianjin Ganghai Construction has failed to gain qualifications as an EPC service provider and approval for overseas services, which greatly affected several major overseas projects and lead to the failure of the restrucuturing.
CSC Phoenix said it wouldn’t plan for a restructuring again in the short term.