China’s Jiangsu Eastern Heavy Industries shipyard (JEHI), a subsidiary of JES International Holdings, has filed an application for debt and liabilities restructuring at Taizhou Intermediate People’s Court.
If the application is accepted, JES claims that ”no other creditors will be able to commence a winding up application as against JEHI, and negotiations will be carried out by the management of JEHI at the oversight of a manager,” which will be appointed by the court to oversee the restructuring process.
JEHI says that it plans to implement the restructuring scheme ”to maximise the value of the company and its assets for its creditors and shareholders.”
JES said that in recent years, due to a decline in the shipbuilding industry as well as inadequate internal management, JEHI has sustained significant financial losses. Particularly, JEHI was impaired by its severe lack of liquidity and cash flow.
The group claims that ”the proposed restructuring scheme will allow JEHI to carry on its business in the ordinary course of nature during the restructuring period, without the threat and distraction of proceedings and other action which may be taken by its creditors.”
Due to JEHI’s restructuring, JES decided not to proceed with the announced placement of 183 million ordinary shares. Trading of shares in Singapore-listed group has been suspended as of today.
In July 2014, the Supreme People’s Court of China blacklisted JEHI for failing to settle its debt obligations.
World Maritime News Staff