Shanghai: Grand China Logistics, the logistics arm of HNA Group, and a number of its subsidiaries recently have been sued by China Huarong Financial Leasing Company. Ningbo Maritime Court is handling the case.
According to Ningbo Maritime Court, Huarong is suing HNA Group and its subsidiaries including Grand China Logistics, Shanghai Grand China Shipping Development, HNA Tourism and Grand China Shipping (Yantai) on disputes in four financial leasing vessel deals it had with Grand China Logistics. The total disputed amount involved in the lawsuit is more than RMB600m. Huarong has applied for asset preservations on HNA’s aircraft and building assets with the court.
Both Huarong and Grand China Logistics have refused to comment on the case. An expert in the financial leasing industry speculates that the dispute is probably not on monthly charters given the RMB600m amount. More likely is the possibility that Grand China Logistics failed to purchase the vessels from Huarong after the expiration of the leasing period according to the agreement. [22/01/13]