Sainty Marine clocks up $57.5m in overdue loan debt

Sainty Marine clocks up $57.5m in overdue loan debt

Shanghai: Financially troubled Sainty Marine has announced that the company currently has RMB357.3m ($57.5m) worth of loan payments in arrears, just a day after a court froze RMB300m ($48.42m) worth of assets of three major shareholders of the company due to its inability to repay loans to Bank of Jiangsu.

The banks owed the payments are Bank of Jiangsu, Bank of Nanjing and China Merchants Bank, and Sainty Marine said it is currently in talks with the financial institutions to try and solve the issue.

The shipyard is now in the process of restructuring the bankrupt Mingde Heavy Industry and might face up to RMB2.94bn ($473m) in losses if the restructuring fails. It is also facing the huge risk of not being able to collect repayments from its financing business, with several ongoing lawsuits with debtor companies.

Meanwhile, the company’s stock trading has been restricted by the stock exchange due to breach of local listing rules.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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