Chinese domestic dry bulk shipping operator CSC Phoenix has announced that a court in Shenzhen has ruled to auction its controlling shareholder Tianjin Shunhang Shipping’s shares in the company at the request of Beijing Greatwall Minxing Equity Investment Fund due to a debt dispute.
Tianjin Shunhang pledged its shareholdings in CSC Phoenix to Greatwall Minxing in 2015 in order to secure a loan and has failed to repay the loan and relevant interest.
The auction will lead to the change of controlling shareholder of CSC Phoenix.
CSC Phoenix has experienced a series of setbacks in the past a few years after it was taken over by Tianjin Shunhang from Sinotrans & CSC including a failed restructuring, failed ownership change, and capacity shortage issues.
Last month, the management of the company flagged issues with the development of the company due to the uncertain outlook for the company’s future operations.