| Compatriot company to acquire RSHI shipyard |
| A Chinese company listed on a stock exchange in China has been identified as a potential purchaser to acquire relevant assets and liabilities of Jiangsu Rongsheng Heavy Industries, a key shipyard owned by China Rongsheng Heavy Industries Group (RSHI). RSHI is further negotiating with the potential purchaser regarding the list and scope of the relevant assets and liabilities and the terms of the potential transaction, according to a stock filing of RSHI on 21 April. The negotiations are currently under good progress, RSHI said. The group has already obtained letters of consent (LOCs) from various major creditor banks. According to the LOCs, the creditor banks have conditionally agreed to various matters in relation to the disposal of assets and liabilities of Jiangsu Rongsheng Heavy Industries, RSHI added. In March, RSHI disclosed it had entered a memorandum of understanding (MOU) with the buyer to sell its shipbuilding and offshore engineering businesses, which are undertaken by its yard in Jiangsu. The MOU will remain in effect until 30 June and is likely to be extended by the two parties. The shipbuilding business of RSHI has slumped to financial hardships since 2010. RSHI lost a total of 29 shipbuilding contracts in 2014 due to the depressed shipbuilding market and its financial hardships, incurring loss of CNY2.9 billion (USD467.7 million). |