Xiamen-based product oil trader and tanker operator Yuhua Energy has received an enforcement order from Xiamen Intermediate People’s Court due to a loan dispute with Huaxia Bank.
The court has ruled to freeze RMB30.35m ($4.3m) worth of assets of Yuhua Energy Holdings Group and its subsidiaries, Xiamen Oceanstar Shipping and Fujian Yuhua Petrochemical, as well as the company’s chairman Lin Caihuo and his wife Lin Aihua.
Additionally, the court ordered to seize property mortgaged by Lin and Xiamen Oceanstar Shipping for auction.
Yuhua Energy said it is now liaising with the bank to discuss an appropriate arrangement. In the meantime, the company is assessing the status of other indebtedness of the group.
Yuhua Energy is involved in the businesses of petrochemical trading, storage, transpiration, and bunkering. The company currently owns a fleet of seven small tankers.