Shanghai: After reaching a preliminary reconciliation with HNA’s subsidiary Grand China Logistics, Huarong Financial Leasing has applied with Ningbo Maritime Court to withdraw its lawsuit against the company.
Huarong had earlier applied to seize some of HNA’s aircraft and building assets with the court in order to get the RMB600m arrears from Grand China Logistics.
Although it seems that Grand China Logistics has settled the case with Huarong, its financial problem is still exposed by several other aspects.
In early 2012, Grand China Logistics has announced plans to issue an RMB1.5bn bond and also raise RMB6bn from its subsidiary Jinhai Heavy Industry’s IPO. However, Grand China did not release any bonds throughout 2012 and Jinhai Heavy Industry also hasn’t show up in the IPO list with reports of the shipyard currently going through financial difficulties as well. [29/01/13]
