Shanghai: CSC Phoenix announced yesterday that it has received a civil ruling from Wuhan Maritime Court that 23 of its vessels will be seized due to its inability to pay offa RMB420m loan to Minsheng Bank. Just one day earlier, part of its equity in one of its subsidiaries had been frozen by the court which was requested by another creditor, China Everbright Bank.
So far there has been five creditor banks including China Exim Bank, Shanghai Pudong Development Bank, China Merchants Bank, China Everbright Bank and Minsheng Bank entering lawsuits against CSC Phoenix. Total liabilities involved in the lawsuits have reached RMB2bn.
According to board secretory of CSC Phoenix, Li Jiahua, total liability of the company is about RMB6bn, and the company has been meeting with the banks every week in a hope to solve the issues through negotiations.
In a board meeting on the same day, the board also announced that it has transferred a 92,500dwt chartered vessel to Shanghai Changhang Shipping as it is unable to pay the charter fees.
Wang Tao, general manager of CSC Phoenix, said the company has been making great efforts to save itself. It laid off 6,167 employees in 2012, and disposed of RMB3.37bn in assets. The senior management’s salary also has decreased by nearly 80%. [24/05/13]
