A group of former employees of bankrupt shipyard Rongsheng Heavy Industries have sent an open letter to Huarong Energy requesting salary, severance and associated insurance payments owed by the company.
Rongsheng quit the shipbuilding business and renamed to Huarong Energy after a restructuring in 2015.
According to the letter, the group of employees left Rongsheng after they reached a severance deal with the shipyard in January 2015. However, Rongsheng still hasn’t paid the outstanding salaries and severance funds owed to them.
The former employees have requested Huarong Energy to give a detailed plan for the payments, otherwise will seek help from government authorities.
In March, Huarong Energy announced a plan to issue 17.1bn new shares to creditors at HK$1.2 ($0.15) per share to offset debts.