Shanghai: Jiangsu Rongsheng Heavy Industries announced yesterday that it received a written notification from Anhui Province Higher People’s Court that the court has accepted litigation proceedings initiated by Rongsheng against Anhui Province Property Rights Exchange for the return of the payment of RMB630m which was a security deposit for bidding in the equity interest of Anhui Quanchai Power.
Two days earlier, Higher People’s Court of Jiangsu dismissed the application filed by Aegon Industrial Fund contesting the original judgment issued by Nantong People’s Court which dismissed Aegon’s request to take RMB16.37m compensation from Rongsheng.
China’s largest private shipyard, Rongsheng, came under fire from investors in July 2012 for failing to complete a protracted takeover of engine maker Quanchai Power.
Rongsheng said in an earlier release that it was expected to suffer a net loss in the first half of this year and it was seeking financial support from a number of banks and financial institutions as well as local governments. Currently it is in talks with government departments of Rugao and Nantong, two cities in Jiangsu, to secure financial assistance. [12/07/13]
