Tankers as collateral for cash-strapped Nanjing Tanker

Shanghai: So precipitous is the financial situation at Nanjing Tanker Corporation that it has had to put two of its tankers as collateral to borrow RMB400m from CMB Leasing, the firm said in a filing to the Shanghai Stock Exchange. The ships, panamax tanker Yong Xing Zhou and MR tanker Chang Hang Tan Suo, will go on an eight-year leaseback agreement to the financial institution.

The latest deal means Nanjing Tanker has a total of 15 ships as collateral.

As reported in the most recent issue of SinoShip magazine (available for free download here: http://sinoshipnews.com/magazines.php) tough times at Sinotrans subsidiary Nanjing Tanker saw it receive an official warning from the Shanghai Stock Exchange as it posted its second consecutive year of net losses, posting RMB754m ($120m) in losses for 2011. Worse followed with Q1 losses of RMB273.1m, almost three times as bad as the same period in 2011 and the stock exchange suspending trading of its 10-year bonds.  [28/06/12]

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