Rongsheng assets seized by court


Jiangsu Rongsheng Heavy Industries, a key subsidiary of China’s large privately-owned China Rongsheng Heavy Industries Group Holdings Limited, is said to have its assets worth CNY 26.50m (around $4.3m) seized by a court due to a dispute with a compatriot equipment supplier.

In a situation where the company reported widened losses during the first half of this year with restructuring going on, IHS reported that Wuhan Maritime Court ruled on August 28 that the assets should be seized following a request from Taixing Xinglong Ship Machinery.

Taixing is a marine equipment supplier located in Jiangsu Province of China. Regarding ship equipment and spare parts, it had a contract dispute with Rongsheng.

This is the second time that Rongsheng assets are seized by the court during July-August period. Back in July, Wuhan Maritime Court approved an application of Nantong Yanjiang Pipe Industry and ruled that Rongsheng assets worth CNY 16m are seized.

Meanwhile, early this month, Rongsheng admitted a rumor that CSSC is considering a plan to acquire the yard is true. It is highly anticipated that the "potential acquirer" might be CSSC subsidiary Shanghai Waigaoqiao Shipbuilding.

Source from : asiasis