Financially troubled shipyard Sainty Marine has announced that it has filed a complaint to Supreme People’s Court of China against Liaoning Higher People’s Court over the auction shares it had frozen in bankrupt Mingde Heavy Industry.
Sainty Marine froze 6.5% equity in Nantong Zongyi Investment belonging to two major shareholders of Mingde, Ji Fenghua and Cheng Jianhua through Nantong People’s Court in October 2014. However, the equity was also frozen by Liaoning Higher People’s Court at the request of another creditor of Mingde.
In June, Liaoning Higher People’s Court auctioned the equity at a low price despite objections from Sainty Marine. Sainty Marine has requested Supreme People’s Court to revoke Liaoning Higher People’s Court’s ruling on the auction.
Sainty Marine is currently working on a rejuvenation plan. It is also being investigated by China Securities Regulatory Commission and facing the risk of delisting if major illegal activities are found in the investigation.