About usAbout us
Yangtze Business NetworkYangtze Business Network
Business toursBusiness tours
Yangtze KnowledgeYangtze Knowledge
Contact usContact us



Wuhan Maritime Court seizes assets for auction

31 July 2013
Phoenix Shipping, the listed arm of China Sinotrans Yangtze National Shipping Corp, the largest barge operator on the Yangtze, received a court order from Wuhan Maritime Court on 26 July, informing the company’s board of directors that three of its ocean-going vessels would be seized and auctioned as a result of its mortgage provider’s application.

The Wuhan Branch of Shanghai Development Bank applied to the court in April. This follows similar moves by several of the company’s creditors asking the court to freeze or seize the company’s bank account or tangible assets in order to get back the full value of the bank’s secured loans totalling Rmb1,140m.

The three ocean-going vessels in question are still in operation, according to a statement from the company’s board. Last year, the three vessels made a loss of US$5.93m and in the first six months of this year recorded a loss of US$3.88m, according to the statement.

In its 2012 annual report, the company had a debt of Rmb5.82bn and assets valued at Rmb5.25bn. Its first quarter profit and loss account showed that the losses increased by 24 per cent to Rmb190m.

Phoenix’s parent company is one of China’s four major shipping lines, employing more than 70,000 people. The question that remains to be answered is whether the government will allow a major state-owned company to go bust.

Copyright © Yangtze Business Services 2019           Tel: +44 (0)20 8874 3217  info@YangtzeBusinessServices.com

Website by HOL