Taizhou Intermediate People’s Court has rejected the proposed restructuring bid submitted by the Singapore-based shipbuilder JES International Holdings Limited (JES) for the company’s subsidiaries in China.
JES had submitted the application for the restructuring of Jiangsu Eastern Heavy Industries shipyard (JEHI) to Taizhou Court, Jiangsu Province, back in March, and received the rejection notice dated May 13, 2015.
Under the laws of the PRC, an applicant is to provide sufficient proof that it is unable to satisfactorily pay off its debts and thereby qualify for a restructuring scheme.
As the Taizhou Court had deemed that JEHI had not successfully reached the required threshold for a restructuring scheme, it had accordingly rejected the company’s application.
Further, the rejection notice also provided that if an applicant wishes to appeal the decision of the Taizhou Court, it should do so within 10 days of the date of the notice to the next higher court in the Chinese judiciary hierarchy, the Jiangsu High People’s Court, where JES submitted an appeal on May 22.