Antong Holdings, the largest domestic container shipping company in China, is facing an increasing number of lawsuits against the company due to the actions of its president Guo Dongze.
According to the Antong Holdings, it currently has ongoing lawsuits with total claims of around RMB600m ($86.8m) against the company as a consequence of Guo provided large amount of illegal guarantees.
The board of the company has urged Guo to solve the issue and is looking at solutions including equity transfer, asset restructuring and loans to raise fund and resolve the disputes with creditors and guarantee holders.
Last month, Antong Holdings was warned by China Securities Regulatory Commission for providing RMB2.476bn ($358m) funds to its president Guo Dongze for personal use. Guo has returned all the funds and sent an open letter to all the shareholders and employees to apologise for his behaviour.
Antong Holdings currently has had some assets of the company frozen by courts, including 54.32% Antong Holdings shares owned by Guo Dongsheng and Guo Dongze, the two controlling shareholders of the company.