Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Rongsheng yard yet to find buyer, restructuring delayed

Rongsheng yard yet to find buyer, restructuring delayed
Distressed China Huarong Energy Company, formerly known as China Rongsheng Heavy Industries, announced that a memorandun of understanding (MOU) over the sale of its assets and liabilities to a potential buyer has lapsed.

The MOU was effective until 30 June 2015, and the company and the potential purchaser have failed to agree to a deal.

Hong Kong-listed Huarong Energy entered into the MOU with the potential purchaser on 10 March, where the latter intends to acquire related core assets and liabilities of Jiangsu Rongsheng Heavy Industries, involved in shipbuilding and offshore engineering in China.

“The company and the potential purchaser are continuing the process of negotiation on the potential restructuring involving the potential transaction,” Huarong Energy said.

It added that Jiangsu Rongsheng Heavy Industries has obtained conditional letters of consent from all of its creditor banks relating to the disposal of its assets and liabilities.

“The group is now assisting the potential purchaser to establish an efficient and competitive professional core management team to enable Jiangsu Rongsheng Heavy Industries to enter into full production and obtain new orders immediately after completion of the potential restructuring,” it said.

While Huarong Energy’s statement did not mention the name of the potential purchaser, privately-owned Yangzijiang Shipbuilding has earlier confirmed its interest to own a stake in the troubled compatriot shipbuilder.

In April, Yangzijiang’s executive chairman Ren Yuanlin had said that the investment into the Rongsheng shipyard was not confirmed, as his company needed to closely study the terms and conditions of the sale and purchase agreement.

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish