| Negotiation over sale of Jiangsu Rongsheng continu |
| Negotiations over the purchase of Jiangsu Rongsheng Heavy Industries have yet to conclude between a Chinese-listed company and China Huarong Energy, which was formerly known as China Rongsheng Heavy Industries Group Holdings (RSHI). RSHI is further negotiating with the potential purchaser regarding the list and scope of relevant assets and liabilities and the terms of the potential transaction, a stock filing of RSHI said on 1 July. The negotiations are currently under good progress, RSHI said. It has already obtained letters of consent from various major creditor banks, according to which the major creditor banks have conditionally agreed to various matters in relation to, among other things, the disposal of assets and liabilities of Jiangsu Rongsheng Heavy Industries, RSHI added. In March 2015, RSHI disclosed that it had entered into a memorandum of understanding (MOU) with the buyer to sell its shipbuilding and offshore engineering business, 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 sector of RSHI has slumped during financial and business hardships since 2010. RSHI lost a total of 29 shipbuilding contracts in 2014 due to the depressed shipbuilding market and its financial hardships, incurring a loss of CNY2.9 billion (USD467.7 million). |