Shanghai: Chinese shipbuilder Sainty Marine has announced that Nanjing Intermediate People’s Court has ruled to freeze RMB300m ($48.42m) worth of assets of three major shareholders of the company, Wang Junmin, Li Jiu and Cao Chunhua, as requested by Bank of Jiangsu.
Sainty Marine took a loan of RMB300m from Bank of Jiangsu in September 2014 and promised to repay the loan if the company couldn’t issue new shares via a non-public offering within six months. Up to now, Sainty Marine hasn’t been able to issue the shares and repay the loan. Bank of Jiangsu then applied with the court to freeze the assets of major shareholders of the company.
Currently stock trading of Sainty Marine has been restricted by the stock exchange because its accounting firm was unable to give a view of the financial statements due to the ongoing restructuring process of takeover target Mingde Heavy Industry, which is a breach of local listing rules.
Sainty Marine reported a net loss of RMB1.8bn ($290m) for the year 2014, a big jump from the estimated loss of RMB403m announced by the company in February.