China’s Evergreen Holding, the parent group of Sinopacific Shipbuilding, has been sued by China Development Bank Securities (CDB Securities) at Ningbo Intermediate People’s Court for debt repayment default.
CDB Securities claims that Evergreen Holding has been unable to make a bond payment of RMB50m ($7.77m) and relevant interest.
Evergreen Holding, owned by Zhejiang businessman Simon Liang Xiaolei, has been suffering a debt crisis since 2016 and has been involved in a series of court cases.
Currently the company’s total liabilities amount to nearly RMB7bn ($1.08bn) and it is dealing a total of 66 court cases.
Two subsidiary yards of Evergreen Holding, Zhejiang Shipbuilding and Yangzhou Dayang Shipbuilding, went into a bankruptcy restructuring process while another affiliate yard Sinopacific Offshore was sold to CIMC Enric in 2017.
In July 2017, Shanghai Stock Exchange openly denounced Liang Xiaolei, general manager of Evergreen Holding, and Liang Guangfu, president of Evergreen Holding and father of Liang Xiaolei, for their negative attitudes when dealing with the bond defaults, including not making disclosures and responding to enquiries from the stock exchange in time.