Asia/Pacific News
Creditors Seek to Liquidate Chinese Carrier
CSC Phoenix, a subsidiary of Sinotrans &CSC, has received letters from two creditors saying they are seeking liquidation of the company, Chinese shipping news site SinoShip News reports.
Zhuhai Yamen Energy-Saving Products Co. and Nantong Tianyi Ship Supply Co. asked the Wuhan Intermediate People's Court to liquidate CSC Phoenix to seek repayments.
Wuhan Maritime Court has already decided to freeze RMB90 million (14.6 million) in bank deposits or equivalent assets of CSC Phoenix and its subsidiary Changjiang Transport Technology Co. on behalf of another creditor, the bank ICBC.
Local government is involved in talks around the potential restructuring of the company, one source told SinoShip News.
CSC Phoenix, which lost between RMB335 million and 360 million ($54 million and $58 million) in the first half of the year, had trading of its shares suspended as of July 5, and it faces a stock suspension of its losses to continue over the rest of the year.
Another Chinese shipping company, Anhui Wuhu Shihui Jianghai Shipping, recently entered bankruptcy.
