China International Marine Containers (CIMC) has announced that subsidiary CIMC Enric is being sued by SOEG Pte, a Singapore Holding company controlled by Simon Liang, due to financial disputes relating to the share transfer deal for former Sinopacific Offshore & Engineering.
CIMC Enric initiated a takeover of Sinopacific Offshore in 2015 and the deal fell through in 2016 as CIMC Enric claimed that certain condition of the acquisition agreement couldn’t be fulfilled and the sellers had breached major terms in the agreement.
The company restarted the takeover after Sinopacific Offshore went into court receivership in 2017 and changed the name of the yard to CIMC Sinopacific Offshore.
However, SOEG claimed CIMC Enric had breached the terms of the original agreement and owes payment of RMB153.4m ($22.7m).
The case has been accepted by Jiangsu High People’s Court and CIMC has filed an objection to the jurisdiction to the court.
Simon Liang, former president and CEO of bankrupt Sinopacific Shipbuilding, was arrested in Myanmar last week, accused of tax evasion in China. Liang’s company Evergreen Holdings has total liabilities amounting to nearly RMB7bn ($1.04bn).