Tianjin Intermediate People’s Court has accepted Shunhang’s application for bankruptcy. The court will appoint the administrator to monitor the liquidation process of Shunhang.
Shunhang owned a debt of RMB3.824bn ($565.1m) due at the end of October 2018. The company was unable to pay back the debts as the end of 22 Jan 2019 and had to file for bankruptcy locally.
Tianjin Shunhang, established in 2003, is focused on domestic shipping business. The company had suffered several debt dispute cases in recent years.
Sinotrans & CSC Phoenix warned in its announcement that the bankruptcy of Shunhang will not affect the company’s operations in the short term, but will bring the risk of changing its controlling shareholder.