Shanghai-listed Anhui Wanjiang Logistics (AWL), formerly Wuhu Port Group, has announced a plan to liquidate its debt-ridden subsidiary Huainan Mining Logistics as part of its restructuring plan.
AWL has suspended stock trading since September 2014 for a restructuring deal after Huainan Mining Logistics was sued by several creditor banks for overdue debts. Local government has also intervened to investigate the case. Currently Huainan Mining Logistics has a total liability of about RMB14.9bn ($2.4bn).
AWL also plans to transfer all its shareholdings in Huainan Mining Logistics to its parent Hainan Mining Group in order to facilitate the restructuring process.
China Securities Regulatory Commission started an investigation into AWL over illegal information disclosure activities in 2014. AWL said it is currently in the process of providing a statement and plea, and it is facing the risk of delisting if the commission identifies the activities illegal.
Wuhu Port is a major port on the Yangtze River. Its first half throughput stood at 56.4m tons, up 10.5% year-on-year, while its container throughput increased by 45.3% year-on-year to 250,000 teu in the same period.