Sponsored By

Rongsheng yard yet to find buyer, restructuring delayedRongsheng 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.

Lee Hong Liang, Asia Correspondent

July 2, 2015

1 Min Read
Kalyakan - stock.adobe.com

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.

Read more about:

Yangzijiang

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like