Shanxi-based coal trader Nanye Group is one step closer to taking over domestic dry bulk operator CSC Phoenix, having become the debtee of the company’s controlling shareholder Tianjin Shunhang Shipping.
CSC Phoenix has announced that Nanye Group has secured Tianjin Shunhang’s 25m CSC Phoenix shares as credit from BOC International through a debt transfer agreement.
Tianjin Shunhang pledged the 25m shares, representing around 2.47 percent of CSC Phoenix’s total shares, to BOC International as part of a financing agreement. Later the two companies entered into a dispute due to Tianjin Shunhang’s default on the loan.
Nanye Group has been aggressively increasing its shareholdings in CSC Phoenix to 15% in the past few months, while Tianjin Shunhang Shipping currently holds 17.89% shares in the company.
Tianjin Shunhang Shipping is currently in a liquidation process under a court ruling. If Nanye Group forces the debt claim, it would become the controlling shareholder of CSC Phoenix.